What are the key details of the DigiCo Infrastructure REIT (ASX:DGT) Chicago asset sale?

DigiCo Infrastructure REIT (DGT) has entered a binding agreement to sell its Chicago (CHI1) data center facility for US$750 million. The sale price represents a roughly 5% premium over the asset's November 2024 purchase price.

How does the CHI1 sale impact the balance sheet of DigiCo Infrastructure REIT (ASX:DGT)?

The sale is a major "capital recycling" move designed to drastically improve DGT's financial position. Pro-forma net debt is expected to drop from US$1.5 billion to approximately US$0.5 billion, while available liquidity will surge to US$0.9 billion.

Where will DigiCo Infrastructure REIT (ASX:DGT) reinvest the proceeds from the US asset sale?

DGT plans to redeploy the unlocked capital into the SYD1 88MW project, which it identifies as its most compelling and higher-returning growth opportunity. This pivot allows the company to accelerate the development of this major project while focusing on assets with better yield potential.

What other US assets is DigiCo Infrastructure REIT (ASX:DGT) planning to sell?

Beyond the Chicago facility, DGT has determined that monetizing its LAX1 and LAX2 sites is in the best interest of securityholders. The company is currently exploring various options to realize value from these specific assets.

Will DigiCo Infrastructure REIT (ASX:DGT) exit the US market entirely?

No, the company is not exiting the US entirely at this stage. DGT confirmed that its Kansas City (KCM1) and Dallas-Fort Worth (DAL1) data centers continue to deliver strong, stabilized returns.

DigiCo Infrastructure REIT sells Chicago asset to boost growth

Written by Mahathir BayenaPublished May. 5 2026Last Updated May. 5 2026

DigiCo Infrastructure REIT (ASX:DGT) announced a strategic shift aimed at bolstering its financial position, headlined by the binding US$750 million sale of its Chicago data centre facility.

The transaction, executed at a 5% premium to its November 2024 purchase price, is expected to reach financial close in the first quarter of fiscal year 2027.

The divestment serves as a primary lever for "capital recycling", allowing the group to drastically reduce its net debt from US$1.5 billion to approximately US$0.5 billion.

DGT’s gearing is projected to fall from 36% to 17%, while available liquidity will surge to US$0.9 billion.

The capital unlocked from this US asset sale will be redeployed to accelerate the development of the higher-returning SYD1 88 MW Project, which the company identifies as its most compelling growth opportunity.

DGT is also exploring options to monetise its LAX1 and LAX2 sites to further realise value for securityholders.

Meanwhile, its Kansas City and Dallas-Fort Worth assets continue to deliver strong stabilised returns.

Beyond debt reduction and project funding, the strengthened balance sheet provides the financial flexibility to explore capital management initiatives, including potential enhanced distributions to return excess capital to investors.

The series of initiatives aligns with DGT’s long-term strategy to close the discount to its net asset value and enhance overall securityholder returns through disciplined capital allocation.