large format retail shops big shopping damn a lot of stores
Image – Large Format Retail Association.
  • $265M raise successful, the latest component, retail entitlement worth $175M
  • The funds will go to seven large format retail acquisitions
  • The institutional entitlement was completed earlier in April worth $93M

Three weeks ago, HomeCo (ASX: HDN) announced it would embark on a $265 million equity raise to fund acquisitions it has on the horizon.

The news came as another institutional entitlement offer was completed, the company raising circa $93 million.

Today

Launched on 21 April, the raise has been successfully completed, reaching the desired $265 million.

The raise was composed of two parts: the institutional entitlement offer as previously noted, plus a retail component which brought in a further $175 million.

The most recent raise closed on Friday last week, with 86.8 million units issued as a result.

“Home Consortium, HDN’s largest unitholder, took up its full entitlement from its 26.6% investment in HDN (equivalent to $70.6 million at the Offer Price (Offer Price) of $1.295).”

Where are the funds going?

HomeCo said the equity raise is to fund the seven large format retail acquisitions and Armstrong Creek Town Centre.

The seven large format retail assets total $266.4 million, the company said it had a weighted average cap rate of 6.75% as compared to the current portfolio which sits at 5.91%. The purchase price was also noted as a discount, 6% lower than independent valuations of $283.7 million.

The Armstrong Creek Town Centre asset had a total purchase price of $55.6 million, the company said it was completed on 29 April this year.



You May Also Like

Westpac sees rates hitting 4.1 per cent and property prices falling further

Westpac said, “2023 will be another challenging year, particularly as the RBA continues to ratchet interest rates higher.”

Home loan hacks: four way to save money on your mortgage

With interest rates expected to keep rising, Compare Club has tips to ease the mortgage pain.

CoreLogic’s guide to navigating a looming ‘fixed-rate cliff’

Many borrowers will feel mortgage pain when they next refinance

How much does it cost to move house?

From cleaning fees to moving services, the costs of moving houses can add up fast