DigiCo offloads US asset for $1bn

DigiCo - HMC Capital's infrastructure REIT - has offloaded a Chicago-based asset for just over $1 billion (US$750m) at a 5% premium, increasing its liquidity to around $900 million.

This comes after DigiCo was forced to withdraw its application for a data centre project at LAX1 in California after advice from the city council indicated planning approval for a data centre at the location was uncertain.

At the time, DigiCo said the LAX1 and LAX2 assets held a book value of US$71 million and it was confident it could realise value from the assets.

DigiCo has determined it will seek to monetise the LAX1 and LAX2 sites, saying it is exploring options to realise the value of the assets and will keep investors informed on the developments.

On the fresh sale of the Chicago asset, DigiCo interim chief executive Chris Maher said it will help strengthen the balance sheet to ensure funding for the SYD1 project, which DigiCo said is its "most compelling growth opportunity".

"The release of capital from CHI1 provides additional financial flexibility and capacity to accelerate the delivery of the SYD1 development program," Maher said.

Despite the speedbumps with the US assets, DigiCo reaffirmed its FY26 guidance, expecting underlying EBITDA of $125 million.

Maher took over as interim chief executive in March after chief executive Michael Juniper announced he would take a period of extended personal leave to spend time with family and work through a personal matter.

This is not the first time Maher has stepped in to run DigiCo, having also taken on the role in mid-2025 when Damon Reid stepped down as chief executive to become chief operating officer and "focus on operational execution and delivery" across the Australian portfolio.

Maher is also the managing director - head of digital infrastructure at HMC Capital and served as non-executive director on the DigiCo board since December 2024.

In March DigiCo dropped out of the ASX 200, following in the footsteps of parent company HMC Capital which dropped out in the December rebalance.