SDC Capital Partners, a US-based digital infrastructure firm, is exploring a potential $1 billion real estate investment trust (REIT) initial public offering (IPO) in Singapore. The company is working with advisers on the listing, which could happen as soon as next year. This move aligns with a trend of REIT IPOs dominating the Singapore market, particularly those related to data centers and artificial intelligence.
SDC Capital, founded in 2016, manages approximately $12.5 billion in assets, including a portfolio of data centers and fiber-optic networks across multiple countries. The potential Singapore IPO would provide SDC with a public vehicle to fund further expansion, capitalizing on Singapore's emergence as a key market for data center capacity, supported by government policies encouraging digital infrastructure development.
The listing would allow SDC to access capital markets in a region with rapidly increasing data center demand. While a US listing is also being considered, the Singapore option appears more likely at this stage. Data centers are crucial for cloud computing and high-speed internet, and a listed trust would enable SDC to finance new projects and upgrades, while offering investors an income-generating vehicle in a sector expected to grow with the expansion of the digital economy. Shares of similar trusts have reportedly traded at premiums to their net asset values.
