ASX Announcement HomeCo Daily Needs REIT

HomeCo Daily Needs REIT to Merge With Aventus Group

HomeCo Daily Needs REIT is pleased to announce that HDN and Home Consortium, (together HomeCo) have entered into a binding Scheme Implementation Deed (SID) with Aventus Group to acquire all AVN securities via schemes of arrangement, subject to certain conditions (the Merger).

Both HDN and AVN Boards unanimously support the Merger and believe it represents a unique and compelling opportunity to create significant value for both HDN unitholders and AVN securityholders. The Merger will create Australia’s leading Daily Needs REIT (the Merged Group) with a combined portfolio size of $4.1bn1 and market capitalisation of approximately $3.2bn2. The Merger brings together HDN and AVN’s highly complementary portfolios with strong strategic rationale, including:

Creates Australia’s leading Daily Needs REIT
Compelling financial metrics
Future last mile logistics infrastructure
Significant growth pipeline and investment opportunity

HDN Chair, Simon Shakesheff said, “We believe the merger is strategically and financially attractive for both HDN and AVN and consistent with HDN’s objective to deliver stable and growing distributions. The increased scale and enhanced capability will allow the merged group to unlock significant value that would not have been accessible on a standalone basis.”

AVN Chairman, Bruce Carter said, “The Merger is attractive for Aventus securityholders, both because of the potential offered by being part of the larger merged groups and because the offer reflects a material premium to Aventus’ trading price and its NTA. After careful consideration, the Aventus Board has concluded that the Merger is in the best interests of Aventus securityholders (other than excluded securityholders) and unanimously recommends that Aventus securityholders (other than excluded securityholders) vote in favour of the Merger, subject to no superior proposal emerging and the Independent Expert concluding in the Independent Expert’s Report (and continuing to conclude) that the Merger in the best interests of Aventus securityholders (other than excluded securityholders)”.