The first batch of data center REITs has arrived! The offering price is close to the upper limit

REITs will welcome new varieties again! This time, the underlying assets will target the currently hot data centers.

Against the backdrop of persistently low market interest rates, many investors have flocked to the REITs market, which has shown significant strength in the first half of the year.

As of July 10, the China Securities REITs Total Return Index has achieved a return of 14.24% this year, performing quite well.

On Monday (July 14), the first two data center REITs are about to open for subscription. What kind of impact will this new type of underlying asset bring to the public fund market?

Rich Product Selection

According to statistics from TianTian Fund, at least 29 new funds will start subscription next week (July 14-18), with most concentrated on Monday.

Overall, there is a rich selection of various products among the new funds next week.

The most numerous are still index funds, totaling 18.

In terms of actively managed equity, there are 5 mixed equity funds available for selection.

In addition, there are 3 bond funds, 1 FOF, and two REITs products.

The First Two Data Center REITs

This year, the performance of REITs has been quite good, and the two REITs launching next week are also significant highlights.

The two products that will start subscription next Monday are the first two data center REITs.

The underlying assets of both products are third-party data center service providers. The selection of underlying assets has made a new breakthrough.

GDS and Range Technology are also among the leading companies in China's data center field, and their asset quality is relatively assured.

According to the China Academy of Information and Communications Technology's "Analysis Report on China's Computing Power Center Service Providers (2024)," GDS ranks first in market share among third-party data center service providers in China, and ranks first in the industry in three key indicators: overall scale, capability construction, and financial status.

Both products being issued are managed by Southern Fund.

New Type of Underlying Assets

This year, the demand for AI computing power has experienced another explosion, highlighting the scarcity of data center assets.

Currently, the data center and its computing power industry maintain a high level of economic viability, capable of generating stable cash flow. For public REITs, data centers are considered relatively ideal underlying assets.

In particular, the customer concentration and stickiness of data centers are relatively high at present, with leading companies maintaining good levels of contract signing and listing rates.

Therefore, as a new type of underlying asset, the returns provided by data center assets are likely to be more stable than those of traditional property-type REITs.

Overall, data center REITs are a product worth paying attention to

Close to Top Pricing for Sale

From the previous inquiry situation, the market has shown considerable interest in these two new products, with high enthusiasm.

During the inquiry phase, the offline subscription multiples for both products exceeded 166 times.

In comparison to the previously announced inquiry range, the pricing for both products is also close to the set price. Among them, the Southern Range Technology Data Center REIT was ultimately priced at 4.5 yuan per share, with an inquiry range of 3.020 yuan per share - 4.531 yuan per share. The Southern GDS Data Center REIT was ultimately priced at 3 yuan per share, with an inquiry range of 2.014 yuan per share - 3.021 yuan per share.

In addition, institutional investors have also shown great interest in data center REITs, with dozens of brokerage self-operated accounts participating in the offline inquiry.

The offline inquiry for the Southern Range Technology Data Center REIT attracted a total of 190 brokerage asset management plans, while the Southern GDS Data Center REIT attracted attention from 60 plans.

It is worth noting that the REITs issued this year have received high attention, all selling out on the first day. How this time will unfold also requires attention.

Risk Warning and Disclaimer

The market has risks, and investment should be cautious. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial conditions, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investing based on this is at one's own risk