HMC Capital Marks Historic ASX Listing with DigiCo REIT Debut

November 25, 2024 12:53 PM AEDT | By Team Kalkine Media

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HMC Capital Marks Historic ASX Listing with DigiCo REIT Debut — Image source: shutterstock

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Highlights

HMC Capital unveils DigiCo REIT on the ASX with a market valuation of A$2.74 billion.

AI-driven growth accelerates demand for data centre infrastructure.

Expansion plans target Australian and US digital infrastructure markets.

HMC Capital (ASX:HMC) achieves a major milestone with the ASX listing of DigiCo REIT, signaling its commitment to capitalizing on the growing demand for AI-powered data centre infrastructure. Scheduled to begin trading on December 12, DigiCo REIT debuts with an initial market capitalization of A$2.74 billion, backed by significant institutional interest.

The strong market response led to an upsizing of the offering by A$100 million, reflecting the robust quality of DigiCo’s underlying assets and the increasing focus on the digital sector. HMC Capital’s Chief Executive David Di Pilla highlighted that the assets under DigiCo REIT provide a unique exposure to this rapidly expanding space.

AI Driving Data Centre Demand

Artificial intelligence (AI) applications such as ChatGPT and Synthesys are transforming the technological landscape, fueling a surge in demand for data centre infrastructure. Companies like Nvidia and Alphabet have benefited significantly from this trend, alongside property firms managing vital cloud computing infrastructure.

DigiCo REIT aims to leverage these advancements through its 13-asset portfolio, which includes key acquisitions such as Global Switch Australia for A$1.9 billion and iseek for A$400 million. The portfolio features major Sydney developments with scalable capacity from 26 megawatts to 88 megawatts. This expansion places DigiCo among Australia’s leading data centre operators.

The growing prominence of the sector was evident in AirTrunk’s recent sale to Blackstone for A$23.5 billion. According to industry estimates, energy consumption by data centres in Australia is projected to grow from 2% to 8% of the nation’s total electricity usage by 2030. DigiCo is strategically positioned to align with this increasing demand.

Global Expansion and Future Potential

HMC Capital also eyes significant opportunities in the US market, described as “10 times the size of any other globally.” This international focus reflects the company’s evolving strategy to tap into large-scale digital infrastructure markets.

Having previously transformed Woolworths’ defunct Masters stores and established REITs such as HealthCo and Daily Needs REIT, HMC Capital continues to strengthen its position as a leading property investment manager. The launch of DigiCo REIT underscores the company’s adaptability and ambition in the digital era.

The DigiCo REIT prospectus has been lodged with the Australian Securities and Investments Commission (ASIC), paving the way for its official ASX listing and future growth.

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