Stock Track | VNET Soars 5.95% in Pre-Market on Deal to Form Data Center Pre-REIT Fund

Stock Track
2024/11/29

VNET Group's stock surged 5.95% in pre-market trading on Friday, following the company's announcement of a deal to form a pre-REIT fund with Dajia Investment to invest in its large data center assets in mainland China.

According to the agreement, the initial assets for the fund will be the first two phases of VNET's 210 megawatt Taicang IDC Campus, valued at around $793 million. VNET will retain a 51% equity interest in these assets through the fund, while Dajia Investment, a subsidiary of Dajia Insurance Group, will acquire the remaining 49%.

This innovative financing structure allows VNET to unlock the value of its premium data center assets while still maintaining majority ownership and operational control. The deal boosts VNET's capital sources through a long-term institutional investor and enhances its balance sheet efficiency to fuel further growth initiatives.

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