SYDNEY, AUSTRALIA: HomeCo Daily Needs REIT has announced acquisition of a 100% interest in Town Centre Victoria Point, QLD for a total purchase price of $160.0 million representing a fully leased yield of 4.75%.
HDN Fund Portfolio Manager Paul Doherty said: “Opportunities to acquire an asset of this quality and scale are rare, particularly one which complements our strategy and existing portfolio so strongly.
This well-located flagship convenience property is anchored by high quality, strongly performing tenants on long term leases with attractive organic growth.
In addition, the property offers significant long-term potential to drive enhanced returns through development by capitalising on the property’s significant expansion potential.”
HDN is undertaking a fully underwritten institutional placement to raise $70 million (Placement) at an issue price of $1.45 (Issue Price) per unit (New Unit) to fund the acquisition and associated transaction costs.
The Issue Price represents a 3.0% discount to the last close price of $1.495 on 2 July 2021.
The New Units will be entitled to the distribution for the quarter ending 30 September 2021 and will rank equally in all respects with HDN’s existing ordinary units from the date of allotment.
New Units will be included in the calculation of any Bonus Units issued at Bonus Unit Determination Date.
The Placement is fully underwritten by Macquarie Capital (Australia) Limited.