- Australian property group Home Consortium (HMC) is launching a $125 million placement to acquire seven properties
- HomeCo will acquire six health, wellness and government assets for a total of $131 million as well as a New South Wales-based home centre for $32 million
- These acquisitions will increase the company’s health, wellness and government exposure to over $400 million of assets
- The transaction will also increase its total managed assets to over $1.7 billion-representing a growth of over 83 per cent since its IPO in October last year
- A total of 32.9 million new securities will be issued at $3.80 each – representing a 4 per cent discount to the five-day volume-weighted average price
- Shares last traded at $3.90 on Thursday, December 3
Home Consortium (HMC) is set to raise $125 million to acquire six health, education and government services properties as well as a Home Centre.
Home Consortium, or HomeCo, is an ASX-listed Australian property group whose strategy is increasing its exposure to health, wellness and government assets.
The real estate company entered a trading halt this morning hinting at the capital raise which will be in the form of a fully underwritten placement to fund the acquisitions.
HomeCo will acquire the six properties for a total initial investment of $62 million and a $131 million total investment including fund-through contributions. In addition, it will acquire the Gregory Hills Home Centre in New South Wales for $32 million.
These acquisitions will increase the company’s health, wellness and government exposure to over $400 million of assets. They’ll also enable HomeCo to establish a second standalone real estate investment trust (REIT) in the first half of next year.
“The acquisitions announced today are an exciting step for HomeCo and increases our exposure to the opportunity-rich Health, Wellness & Government sectors,” Executive Chairman and CEO David Di Pilla said.
“Importantly, the establishment of the HealthCo REIT in early 2021, today’s $125 million placement and HomeCo’s newly formed Capital Partnerships Group will set the foundation for HomeCo to accelerate growth in assets under management,” he added.
Excitingly, the transaction will increase HomeCo’s assets under management (AUM) to over $1.7 billion across 47 assets which represents a growth of over 83 per cent since its IPO in October 2019.
The $125 million placement will result in the issue of 32.9 million new securities at an issue price of $3.80. The issue price represents a 2.6 per cent discount to the last close price of $3.90 and a 4 per cent discount to the five-day volume-weighted average price of $3.96.
New shares under the placement are expected to settle on December 9 and will commence trading on the following day.
HomeCo expects to remain in the trading halt until Tuesday, December 8. Shares last traded at $3.90 on Thursday, December 3.