* Says to use proceeds to repay debt

* Says to sell common shares

Dec 31 - Digital Realty Trust Inc (DLR.N) said it, along with its operating partnership Digital Realty Trust L.P., plans to raise up to $400 million through sale of its common shares. The net proceeds from the share sale will be used to pay down debt, to buy additional properties and to fund development and redevelopment opportunities, the company said in a filing with the U.S. Securities and Exchange Commission.

The real estate investment trust said Citigroup Global Markets Inc; Merrill Lynch, Pierce, Fenner & Smith Inc and Credit Suisse Securities (USA) LLC will act as the agents for the offering.

Shares of the company closed at $49.80 Wednesday on the New York Stock Exchange. (Reporting by Thyagaraju Adinarayan in Bangalore; Editing by Unnikrishnan Nair)