HomeCo Daily Needs trust kicks off listing with $48m acquisition

HomeCo Daily Needs trust kicks off listing with $48m acquisition

HomeCo's Daily Needs REIT (ASX: HDN) landed on the ASX yesterday following a $300 million initial public offering (IPO) and announced a major acquisition on debut.

The company has signed a deal to acquire Marsden Park Shopping Centre in Queensland for $48 million, fully funded by debt.

The convenience asset has a long weighted average lease expiry (WALE) of eight years and 530 car spaces, with the acquisition representing HDN's first step in the 'Own, Develop and Manage' strategy.

The acquisition announcement came as the new REIT (real estate investment trust) debuted on the ASX yesterday, with shares in the entity rising by 3.08 per cent to $1.34 per share after around three hours of trade.

The REIT now owns a portfolio of 18 properties located in metropolitan growth corridors across New South Wales, Victoria, Queensland, Western Australia and South Australia.

Prior to the acquisition of the Marsden Park Shopping Centre HDN's portfolio was independently valued at $844 million.

The REIT's IPO and ASX listing was supported by Baker McKenzie, with the firm's head of equity and capital markets Antony Rumboll expressing his excitement.

"We are excited to be a part of HomeCo's continued growth after having worked on its own successful IPO back in late 2019," Rumboll said.

"The establishment of HomeCo Daily Needs REIT creates the opportunity for unitholders to gain exposure to a vehicle focused on investing in stabilised, predominately metro-located and convenience based assets targeting consistent and growing distributions. We are proud to have played a part in that."

HDN's largest shareholder is Home Consortium (ASX: HMC) itself, with a 26.6 per cent interest in the trust.

Back in October when HDN's $300 million IPO became successfully underwritten HomeCo's CEO David Di Pilla acknowledged the milestone.

"The HomeCo Daily Needs REIT investment story is built around a model portfolio of stabilised convenience and essential services assets targeting consistent growing distribution which has resonated with investors," he said.

"[The listing] is a major milestone for our organisation in the journey to become an Owner, Developer & Manager of assets."

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