DigiCo sells LA data centre sites
DigiCo Infrastructure REIT has agreed to sell its LAX1 and LAX2 data centre development sites in Los Angeles after planning approval became uncertain.
The ASX-listed landlord backed by HMC Capital and founded by David Di Pilla said the result for the neighbouring Monterey Park properties were “broadly in line with the acquisition price” two years ago.
It outlaid US$39m for the LAX1 block and US$33.5m for LAX2.
Another US$10m contingent payment was tied to development approval.
The deal, subject to conditions, is expected to settle in the first half of FY27.
In a statement Friday, the company said FY26 underlying EBITDA guidance of $125m.
DigiCo sells another US asset
The divestment comes two months since DigiCo withdrew its application for a 66 megawatt data centre campus after receiving advice from the City of Monterey Park that a permit had become doubtful; an initial plan proposed a 72MW facility (continues below).
The project attracted local opposition concerned about, amongst other things, power consumption and noise.
The trust also offloaded its Chicago CH1 data centre, for US$750m.
All properties were acquired as part of DigiCo’s North American growth ambitions before planning challenges emerged.
“DGT’s strategy is to recycle capital from non-core assets into the higher-returning SYD1 development,” the statement said.
The transactions increase available liquidity to approximately $1 billion providing funding to develop the SYD1 campus in west Sydney.
Subscribe to our newsletter at the bottom of this page.
