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HMC Capital (ASX:HMC) is betting big on one key thematic with strong fundamentals ā a data centre REIT worth $2.74B.
Shares jumped +1.75% to $11.94/sh on the news in early trades. The new REIT is expected to commence trading conditionally on 12 December and will be called DigiCo.
HMC Capital will, in turn, own $500M of DigiCo REIT, which amounts to some 18% of its total value. This will see HMC’s assets under management (AUM) jump to $17.5B ā a 73% increase over AUM in December 2023.
In a world where AI has become the king as far as (probably overstretched) valuations go, data centres are the fundamental building blocks that keep that train running.
A data centre REIT also brings life back to a part of the ASX long dogged now by commercial real estate concerns, though, it’s not the first.
A prospectus was lodged with ASIC today, all but locking in the company’s launch on the market.
It’s worth noting for another reason, too. This will be the biggest IPO in six years.
HMC last traded at $11.94/sh.
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