Home Co have now issued a product disclosure statement (PDS) for the proposed HomeCo Daily Needs REIT and confirmed a $300m underwriting arrangement to support the offer.
The Group have entered into Underwriting arrangements following receipt of commitments from a range of institutional investors along with Joint Lead Managers (Goldman Sachs and Macquarie) and Retail Co-Managers to the IPO.
As the assets for the HomeCo Daily Needs REIT are currently held within the HomeCo REIT, the new REIT will be established through a capital reduction of HMC and effected via a distribution in specie of ordinary units in the REIT to HMC securityholders.
The REIT will initially contain 17 assets valued at over $840m and is proposed to deliver a 5.5% distribution yield at the offer price. The REIT’s assets are 98% occupied with a WALE of 8.4yrs. The fund will start with a conservative gearing range of 30% – 40%.
The proposal is conditional on the approval of HMC securityholders at the HMC Annual General Meeting on 18 November 2020.
HomeCo Executive Chairman & CEO David Di Pilla commented, “We are extremely pleased to have entered into an underwriting agreement for the Offer. The HomeCo Daily Needs REIT investment story is built around a model portfolio of stabilised convenience and essential services assets targeting consistent growing distributions which has resonated with investors. The proposed ASX listing of the HomeCo Daily Needs REIT
in late November is a major milestone for our organisation in the journey to become an Owner, Developer & Manager of assets”.
HomeCo Daily Needs REIT, Independent Non-Executive Chairman, Simon Shakesheff commented, “On behalf of my fellow directors we are pleased to be joining the Board and are extremely enthusiastic around the future
prospects for the HomeCo Daily Needs REIT through the ownership of stabilised convenience based assets with the aim of delivering consistent and growing distributions to our unitholders”.
Related Articles
