Digital Core REIT scraps equity fundraising plan for Frankfurt facility acquisition

The REIT will now acquire the 25% stake in the facility via debt funding.

Digital Core REIT announced that it will acquire a freehold data centre in Frankfurt, Germany, through debt funding instead of equity fundraising.

The REIT will proceed with the 100% debt-funded acquisition of a 25% interest in the Frankfurt facility for approximately US$140m.

“Accordingly, Digital Core REIT no longer expects to complete the Digital Subscription or the Private Placement,” the REIT’s manager announced.

“The consideration payable will be funded entirely with debt and no new units of Digital Core REIT will be issued to fund the purchase of the 25% interest in the Frankfurt Facility, which is expected to close by yearend,” the manager added.