NTT Data Group plans Singapore REIT IPO in biggest deal since 2017

Japan’s NTT Data Group has filed a preliminary prospectus with Singapore’s financial regulator to list a real estate investment trust on the Singapore Exchange, in what could be the largest REIT initial public offering in the city-state since 2017.

According to people familiar with the matter, the IPO could raise as much as 800 million US dollars, Dow Jones Newswires said.

NTT DC REIT plans to price its units at 1.00 US dollar each. The deal would mark a significant revival of large-scale listings in Singapore after a prolonged lull in activity.

NTT Data has already secured seven cornerstone investors who have agreed to subscribe to 172.77 million units.

Securing cornerstone participation early in the process helps build confidence among institutional and retail investors ahead of the wider launch.

GIC leads cornerstone investors

Singapore’s sovereign wealth fund GIC has committed more than 100 million US dollars, making it the largest cornerstone investor in the offering.

Other key backers include Hazelview Securities, Hong Kong-based Viridian Asset Management, AM Squared, Pinpoint Asset Management and Ghisallo Master Fund.

The strong cornerstone interest highlights broader investor confidence in data centre infrastructure, an asset class that has seen rising allocations due to growing demand from cloud computing, AI and digital transformation trends.

NTT DC REIT's diversified data centre portfolio

NTT DC REIT’s initial portfolio includes six data centres — four in the United States, one in Austria and one in Singapore.

The facilities are spread across top-tier markets in the US and Asia-Pacific, providing geographical and operational diversification.

In its prospectus lodged with the Monetary Authority of Singapore on June 27, NTT said it expects continued growth in the global data centre market, supported by increasing pricing, capacity absorption and shrinking vacancy rates.

The company also cited surging capital flows into data centres as investors seek exposure to digital infrastructure.

NTT, which has a market capitalisation of around 90 billion US dollars, operates one of the world’s largest data networks, spanning over 20 countries and regions across the Americas, Europe, Asia-Pacific, the Middle East and Africa.

REIT market recovery in focus

If successful, the listing would be Singapore’s largest REIT IPO since NetLink NBN Trust raised nearly 2 billion US dollars in July 2017.

Singapore is one of Asia’s leading hubs for REITs, with 41 listed REITs and property trusts valued at more than 65 billion US dollars as of March.

These investment vehicles are popular among yield-seeking investors, offering annual returns of 6 to 7 percent, well above local fixed deposit rates.

The NTT IPO comes at a time when Singapore’s capital markets are seeking renewed momentum.

In recent years, delistings have outpaced new listings, prompting the Monetary Authority of Singapore to explore reforms.

Earlier this year, an equities market review group proposed a package of measures including tax incentives and a five-billion Singapore dollar investment fund to attract more listings and deepen liquidity.

BofA Securities, Citigroup and DBS are advising NTT DC REIT on the IPO, which could price and launch in the coming months, subject to regulatory approval and market conditions.