ASX Wrap
The ASX mid-week wrap. Photos – from Canva.
  • Market dropped some 80 to 90 points since Tuesday's highs
  • Dexus makes another takeover bid, second in a fortnight
  • Vitalharvest offered $1.28 per unit by MAFM in latest update

A treasurer, an ASX 50 CEO, and a farmer walk into bar, suffice to say this is not the normal mid-week wrap.

Vitalharvest returns to the wrap with new news, Dexus’ gullet is ready for another takeover, and the ASX seemed to express its displeasure at the federal government’s budget.

The broader market

The ASX edged towards 7,100 basis points last week before cooling off a touch as the market wrapped up on Friday.

This week, however, it opened with gusto reaching an all-time high of 7,172.8 on Monday, pipping the previous 7,162 of February 2020 before the, you know… pandemic and all that.

As the federal budget loomed, the market bid adieu to the record highs, moving below 7,010 today, before recovering to around 7,042 at the time of publishing.

asx market chart for 12 05 2021
Image – Google.

The 1.1% drop from Monday’s record high, which was bolstered by the continued ascent of iron ore prices, was not exclusive to the Australian market. Falls were experienced on the Dow, down 1.35%, the S&P 500, down 0.9%, and the Nasdaq dropped 4.2% at one stage. As of this morning, the NASDAQ is only 0.1% down, dragged down by tech stocks, Asian markets followed suit, and Europe’s FTSE dropped 2.5%.

So far today, the top-performing real estate companies are:

Top-performing ASX listed real estate companies

Company Code Price Change (%)
CAQ Holdings CAQ 0.019 +5.56
Kingsford Global KLO 0.049 +4.26
CSR CSR 6.16 +4.23
Victory Offices VOL 0.225 +2.27
Aspen Group APZ 1.24 +2.06

Source: ASX

The movement

Monday’s first story was Aspen’s (ASX: APZ) fifth acquisition for 2021. In addition to its investments in student accommodation, the Aspen Group (ASX: APZ) has made a move in the other direction with the purchase of a partially completed retirement village in South Australia. The Lewis Fields Retirement Village in Strathalbyn went for $2.36 million which equates to about $30,000 per approved site, including the 26 existing retirement homes under contract. The company can build another 54.

Centuria Industrial REIT (ASX: CIP) extended the Woolworths distribution centre lease in Warnervale, New South Wales by five years; the move brings the WALE for the logistics asset to 10.2 years.

Macquarie Agricultural Funds Management (MAFM) beat back against Roc Private Equity again in the months-long bidding battle for Vitalharvest (ASX: VTH). Roc upped the then accepted offer from MAFM for $1.26 per unit or $348.1 million in assets, to $1.27 on Tuesday, quickly followed by MAFM’s prise de fer at $1.28. The asset sale alternative to unit take over now stands at $351.8 million. Later that day the company determined the MAFM offer to be the best, and accepted it (once again); it looks like there will be more to come.

Tuesday remained a day to remember, APN Convenience Retail REIT (ASX: AQR) announced $59 million in acquisitions across Queensland including a number of 7-Eleven stores which will make up 68% of the income from the new acquisitions.

The APN news was swiftly followed by Dexus (ASX: DXS) announcing it made a binding offer to takeover APN Property Group (ASX: APD). APD is the responsible equity for APN Industria REIT (ASX: ADI) and APN Convenience Retail REIT (ASX: AQR). Takeover consideration is expected to be $320 million, with a call option available for Dexus to acquire the 19.9% owned by Chair and largest security holder of APD, Chris Aylward.

Tuesday also saw Garda Diversified Property Fund (ASX: GDF) welcome a 21% increase in net tangible assets. The price per stapled security is now $1.45, up from $1.125 on Monday.

Finally, in today’s updates, HomeCo (ASX: ADN) announced it had successfully completed a raising effort. The first part was an institutional entitlement offer which brought in some $93 million, the recent retail offer which closed last Friday brought in the remaining amount required, some $175 million; the funds will go towards the acquisition of a number of large format retail properties.

Aventus (ASX: AVN) announced the divestment of MacGregor Home in Queensland for $42.1 million.

Those three trading days of curiosity, positivity, and multi-million dollar deals make it sound like Robin Leach might return from beyond and utter those famous words.

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