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.

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