Home Consortium proposed Daily Needs REIT is set to be listed in November via an in-specie distribution to securityholders.
The new REIT, which will comprise a portfolio of stabilised, convenience-based assets targeting consistent growing distributions.
HomeCo is targeting an ASX listing of the HomeCo Daily Needs REIT in late November 2020, following a securityholder vote to be held at the AGM on 18 November 2020. A notice of meeting and explanatory memorandum are expected to be distributed to HomeCo securityholders in mid-October 2020.
The transaction remains subject to final Board approvals, third party consents and all necessary regulatory and securityholder approvals. In conjunction with the proposed ASX listing, HomeCo also intends that the HomeCo Daily Needs REIT undertake an equity raising at the time of its ASX listing.
The REIT will have a deliberate focus on hyper-convenience and daily needs tenants with a strong diversification across tenants, sectors and geographies. The portfolio will offer an 8.5 year WALE and provide a distribution yield of 5% per annum with gearing of circa 30% – 40%.
Home Co expect to include two new Centres in the portfolio; the Glenmore Park Town Centre near Penrith and the Gregory Hills Town Centre.
The Glenmore Park Centre, which includes a Woolworths, Coles and Aldi is udner contract to HomeCo for about $150 million from private investment company Village Fair Shopping Centres led by Rick Abrahams. The Gregory Hills Town Centre is a Woolworths anchored Centre under due dilligence for approximately $70m.
The proposed strategic acquisition of two Sydney neighbourhood centres once completed will be important seed assets in the HomeCo Daily Needs REIT and will take the total assets under management of the vehicle to approximately $800 million. The portfolio will comprise the following Centres;
- Hawthorn East
- Glenmore Park
HomeCo is also pleased to announce the proposed appointment of Mr Simon Shakesheff as Independent NonExecutive Chairman and Mr Simon Tuxen as Independent Non-Executive Director to the HomeCo Daily Needs REIT responsible entity. Mr Simon Shakesheff brings over 30 years of property and finance experience to the Board. He was previously Head of Strategy and Stakeholder Relations at Stockland Group and spent 19 years as an equities analyst covering real estate and retail companies at Macquarie Bank and J.P. Morgan. Mr Simon Tuxen has over 25 years’ experience as general counsel in major listed entities most recently as the General Counsel and Company Secretary at Westfield from 2002 to 2018.
HomeCo intends to appoint a third independent director and its search for the appropriate candidate is well progressed. HomeCo has appointed Goldman Sachs Australia Pty Ltd and Macquarie Capital (Australia) Limited as financial advisors and Joint Lead Managers on the transaction.
Morgans Financial Limited and Ord Minnett Limited have also been appointed as Joint Lead Managers.