The new units to be issued will increase the number of units in issue by up to 166,667,000, which is an increase of up to 14.8% of the total number of units in issue as at Jan 16.
Of the proceeds, US$75 million will be used to fund future potential acquisitions. This may include the proposed acquisition of a further 4.9% interest in the property located at the Wilhelm-Fay-Straße 15 and 24 in Frankfurt, Germany as well as 20% interest in the Frankfurt Facility previously announced on Nov 1 to bring the total interest to be acquired by Digital Core REIT to 24.9%. The REIT is also seeking to acquire interest in a data centre located in Japan.
About US$22.5 million will be used for debt repayment, while the remaining approximately US$2.5 million will be used to pay the estimated fees and expenses to be incurred in connection with the private placement.
Units in DCREIT closed at an unchanged 66.5 US cents on Feb 6.
