- Real estate investment trust HomeCo Daily Needs (HDN) is planning a $265 million equity raise to buy seven assets from Home Consortium
- The company will purchase the assets, located around Australia, for a total price of $266 million
- Additionally, HDN will also be purchasing Armstrong Creek Town Centre in Geelong, Victoria, for a further $55.6 million
- However, HomeCo shareholders will need to vote on the purchase, which is expected to be held in June
- To pay for the purchase, the company will undertake a one for 2.36 accelerated non-renounceable entitlement offer
- The deal will see shares offered at $1.29 each, a 4.8 per cent discount to the last closing price
- On the market, HomeCo last traded at $1.30 per share on April 16
HomeCo Daily Needs REIT (HDN) is planning a $265 million equity raise to buy seven assets from Home Consortium.
The real estate investment trust will purchase the assets for $266 million.
The seven assets include Marsden Park (NSW), Box Hill (VIC), South Morang (VIC), Upper Coomera (QLD), Bundall (QLD), Mackay (QLD) and Toowoomba (QLD).
Additionally, HDN will purchase Armstrong Creek Town Centre for a further $55.6 million.
Armstrong Creek is a newly completed Coles-anchored neighbourhood centre
which opened in September 2020 and provides exposure to the growing population in Geelong, Victoria.
However, HomeCo shareholders will need to vote on the purchase, which is expected to be held in June.
To pay for the purchase, the company will undertake a one for 2.36 accelerated non-renounceable entitlement offer. The deal will see shares offered at $1.29 each, a 4.8 per cent discount to the last closing price.
“Today’s announcement builds on HDN’s strong growth trajectory since IPO. HDN is executing on its stated strategy to provide Unitholders with consistent and growing distributions by investing in a diversified portfolio of high quality, stabilised convenience focused assets,” Non Executuve Chairman Simon Shakesheff said.
“The proposed acquisitions and equity raising substantially improve the quality
and scale of HDN’s portfolio and are expected to deliver FFO accretion and reduced gearing. The proposed transaction demonstrates the strong alignment of interests with Home Consortium, HDN’s largest Unitholder and manager,” he added.
HomeCo has entered a trading halt ahead of the capital raise. Under the halt, company shares will be paused until Wednesday, April 21, or when the raise is completed, whichever one comes first.
On the market, HomeCo last traded at $1.30 per share on April 16.