Blackstone-backed AirTrunk lines up S$2 billion debt package ahead of Singapore REIT listing.
AirTrunk, the data centre operator controlled by Blackstone, is negotiating with lenders to secure approximately S$2 billion (roughly $1.6 billion) in financing ahead of a Singapore real estate investment trust initial public offering backed by its assets.
The company has approached banks for multiple debt tranches with maturities spanning three to seven years, denominated in Singapore dollars and yen, according to people familiar with the discussions who requested anonymity because the talks remain private.
The REIT itself would raise the borrowing, which is expected to fund the acquisition of assets from AirTrunk and refinance existing obligations. Terms remain unsettled and could shift before any agreement is finalized, the people cautioned. Representatives for AirTrunk and Blackstone declined to comment.
The planned listing represents a significant test for data centre financing across Asia, where lenders are running up against internal sector exposure limits and have grown more selective about which projects they support. Regional data centre lending has climbed to nearly $29 billion since the beginning of 2025, according to Bloomberg data.
AirTrunk has been among the most active borrowers in the region's data centre sector. The company recently closed a $2.3 billion green loan for a facility in Malaysia, adding to billions already raised for construction projects across its footprint. That track record, combined with Blackstone's backing, has kept banks willing to extend credit even as they turn away smaller and less established operators, the people said.
As financing demand intensifies, lenders are developing new structures to free up balance sheet capacity. Asset-backed bonds are one avenue AirTrunk is exploring, alongside the REIT listing, which would allow the company to shift assets into a publicly traded vehicle and tap a broader investor base.
As of June, the company was close to filing confidentially for the REIT IPO, according to people familiar with the matter. Earlier in the year, the offering was expected to raise about $1.5 billion.
Blackstone acquired AirTrunk in a deal valued at A$24 billion (approximately $17.3 billion). The operator runs data centres across Asia-Pacific, including Singapore, positioning the proposed REIT as one of the more closely watched listings in the region's commercial property and infrastructure financing markets.
Bankers are watching the deal closely as a barometer for how much leverage the market will accept in data centre-backed REIT structures. If the listing succeeds at the targeted size, it could encourage other operators to pursue similar vehicles. If lenders demand tighter terms or the IPO prices below expectations, it may signal that sector concentration limits are beginning to constrain the broader financing pipeline.