Japan’s NTT Plans Singapore IPO for $1.6B Global Data Center REIT

Japanese telecommunications giant Nippon Telegraph and Telephone (NTT) is preparing to spin off six of its global data center assets into a Singapore-listed real estate investment trust (REIT) called NTT DC Reit, marking the largest IPO in Singapore in four years. The portfolio, valued at around US$1.6 billion, includes data centers located in the United States, Austria, and Singapore, reflecting NTT's strategic focus on capital recycling and asset optimization to boost growth and balance sheet flexibility. This move aligns with strong growth trends in the global data center market, characterized by rising prices, increasing capacity absorption, and declining vacancies, as well as heightened capital allocations to data centers worldwide. Cornerstone investors for the REIT include Singapore's sovereign wealth fund GIC alongside other asset management firms, indicating significant institutional interest. The listing comes amid broader efforts by Singapore's Monetary Authority to revitalize the local equity market through incentives for large listings, as NTT seeks to capitalize on favorable market conditions and regulatory support. Overall, NTT's strategy may signal a growing trend among tech companies to leverage REIT structures for financial agility and market expansion.