HomeCo Daily Needs REIT acquires 6 daily needs assets

HomeCo Daily Needs REIT (ASX.HDN) announces the acquisition of 100% interest in 6 daily needs assets for a total purchase price of $222.0 million, representing a weighted average acquisition capitalisation rate of 5.78%.

HDN will be undertaking a fully underwritten placement to raise $88.3 million at an issue price of $1.61 per unit to partially fund the Acquisitions and associated transaction costs.

HDN Fund Portfolio Manager Paul Doherty said: “The acquisitions and placement announced today are consistent with HDN’s strategy to secure high-quality daily needs focused assets which complement our model portfolio and deliver stable and growing distributions. The acquisition properties were all secured off market and offer highly defensive and growing income streams via long-term leases to major national tenants, high occupancy, and embedded rental growth through fixed annual rental reviews of 3.3%. Furthermore, the assets are strategically located in key growth corridors with low site coverage, which provides further upside potential from future accretive brownfield development.”