HMC Capital announces strategic acquisition to seed Global DigiCo Platform and $300m Equity Raise

HMC Capital (ASX.HMC) today announced key initiatives to establish a global digital infrastructure platform comprising the global DigiCo Infrastructure REIT (DigiCo REIT) intended to be listed on the ASX alongside a new institutional Unlisted Fund. 

HMC has agreed terms to acquire 100% of Global Switch Australia for $1.937bn, a highly strategic 26MW colocation data centre located in Sydney CBD, offering a significant growth opportunity with a large scale development pipeline. This will be the seed asset for the Global DigiCo Platform along with multiple other assets, predominately based in the United States, which are currently under exclusive due diligence. 

To underwrite this acquisition, HMC is undertaking a $300m fully underwritten institutional placement, at an issue price of $8.75 per share. Placement proceeds are intended to deliver 20%+ ROIC target from new funds management and co-investment income in the medium term. 

HMC Managing Director and CEO, David Di Pilla, said “Digital infrastructure represents a major funds management growth opportunity for HMC and we believe the establishment of both a listed and unlisted vehicle will enable HMC to take advantage of high quality acquisition opportunities across the value chain to generate attractive risk adjusted returns".

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