Acquisition of Flagship Convenience Asset
HomeCo Daily Needs REIT (ASX.HDN) is pleased to announce the acquisition of Town Centre Victoria Point, QLD for a purchase price of $160.0m, representing a fully leased yield of 4.75%. The Centre is anchored by highly productive major national and ASX-listed tenants including Woolworths, Bunnings, Healius and Endeavour Group, and presents significant development upside due to the large-scale (7.6ha) of the asset.
HomeCo Daily Needs will be undertaking a fully underwritten institutional placement to raise $70 million at an issue price of $1.45 per unit to fund the acquisition and associated transaction costs.
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.”