Can DigiCo Unlock Greater Returns by Recycling Capital into Its Flagship SYD1 Data Centre Development?
DigiCo Infrastructure REIT (ASX: DGT) has entered into a conditional agreement to divest its LAX1 and LAX2 data centre sites in Los Angeles, with the transaction reflecting a sale price broadly consistent with the original acquisition cost. The proposed sale forms part of DigiCo’s broader capital recycling strategy, which focuses on redeploying capital from non-core assets into higher-return development opportunities. Management intends to direct proceeds from the LAX divestment, together with the previously announced Chicago (CHI1) sale, toward the development of the SYD1 project in Sydney. Following completion of both transactions, DigiCo expects available liquidity to increase to approximately AU$1.0 billion, providing substantial funding capacity for future growth initiatives. The Company noted that completion of the Los Angeles transaction remains subject to customary conditions and is expected during the first half of FY27. Importantly, DigiCo reaffirmed its FY26 Underlying EBITDA guidance of AU$125 million, highlighting continued confidence in the performance of its global data centre portfolio and development pipeline.
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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
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Can DigiCo Unlock Greater Returns by Recycling Capital into Its Flagship SYD1 Data Centre Development?
DigiCo Infrastructure REIT (ASX: DGT) has entered into a conditional agreement to divest its LAX1 and LAX2 data centre sites in Los Angeles, with the transaction reflecting a sale price broadly consistent with the original acquisition cost. The proposed sale forms part of DigiCo’s broader capital recycling strategy, which focuses on redeploying capital from non-core assets into higher-return development opportunities. Management intends to direct proceeds from the LAX divestment, together with the previously announced Chicago (CHI1) sale, toward the development of the SYD1 project in Sydney. Following completion of both transactions, DigiCo expects available liquidity to increase to approximately AU$1.0 billion, providing substantial funding capacity for future growth initiatives. The Company noted that completion of the Los Angeles transaction remains subject to customary conditions and is expected during the first half of FY27. Importantly, DigiCo reaffirmed its FY26 Underlying EBITDA guidance of AU$125 million, highlighting continued confidence in the performance of its global data centre portfolio and development pipeline.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au