Blackstone Data Center REIT Seeks $1.8B in IPO
Blackstone's new data center real estate investment trust is seeking to raise about $1.75 billion in its initial public offering.
Blackstone Digital Infrastructure Trust Inc. is offering all of its 87.50 million common shares, with the anticipation that they will be priced at $20 a piece, the company said in a new filing with the United States Securities and Exchange Commission. The amount also includes 725,987 in bonus shares.
The new company plans to target newly constructed data center acquisitions in the $250 million to $1.5 billion value range. Also, it will seek weighted average lease terms spanning from 10 to 20 years, asset yields being at least 5.75 percent and rent escalators ranging between two and three percent annually.
According to the filing, Blackstone Digital sees a "substantial investment opportunity" in the sector, with a projected $1 trillion addressable stabilized data center market during the next five years.
In fact, the REIT said that it has reviewed and identified roughly $25 billion of near-term opportunities in the following regions: Austin, Maryland, Ohio, Phoenix and Northern Virginia.
"We believe that this backdrop presents an attractive environment to acquire mission-critical, stabilized data center assets leased to investment-grade hyperscale tenants," it said in the filing.
"Given the size and scale of stabilized data center assets, access to debt and equity capital at scale will be a key differentiator in executing on future acquisition opportunities."
The lead joint book-running managers on the IPO are Goldman Sachs & Co., LLC, Citigroup, Morgan Stanley, Barclays, BofA Securities, Deutsche Bank Securities, J.P. Morgan, RBC Capital Markets and Wells Fargo Securities.
Blackstone Digital's shares will trade on the New York Stock Exchange under the symbol "BXDC."
Source: GlobeSt/ALM