Blackstone’s AirTrunk is said to explore Singapore Reit IPO

[SINGAPORE/HONG KONG] AirTrunk, the Australian data centre operator that Blackstone bought in a record 2024 deal, is considering options including a potential real estate investment trust (Reit) listing in Singapore, people familiar with the matter said.

AirTrunk has held initial discussions with prospective advisers about a possible Reit initial public offering (IPO), that could raise more than US$1 billion, said sources who asked not be identified because the information is private.

A listing could take place as soon as 2026 if it decides to go ahead, the sources added.

Blackstone and Canada Pension Plan Investment Board (CPPIB) acquired AirTrunk for A$24 billion (S$20.6 billion), eclipsing the US alternative asset manager’s previous record Asia-Pacific deal – an A$8.9 billion takeover of Crown Resorts in 2022.

AirTrunk is the region’s biggest operator of data centres, with a presence in Australia, Hong Kong, Japan, Malaysia and Singapore. 

A potential Reit listing of AirTrunk assets comes as a growing number of companies and investors plough money into data centres, to power what is expected to be huge demand for artificial intelligence (AI) technology.

Hundreds of billions of dollars are expected to be spent on data centre leases, as companies seek computing power to build out the AI models they believe will reshape the global economy. 

Deliberations about the potential IPO are ongoing, and the size and structure of any deal could change, the sources said.

AirTrunk may also decide against pursuing a listing, they said. Representatives from Blackstone and CPPIB declined to comment.

AirTrunk could not immediately be reached for comment outside regular business hours in Australia.

Singapore is a major hub for Reits, which make up about 10 per cent of its stock exchange’s market capitalisation. This year, it hosted its biggest listing in eight years – the US$773 million IPO of NTT DC Reit, a data centre Reit backed by Japan’s NTT. BLOOMBERG