HMC Funds Management (HMC), as responsible entity for HomeCo Daily Needs REIT (ASX:HDN)
, has announced the successful completion of the underwritten institutional placement announced on Monday, raising approximately $70 million through issuing around 48.3 million new ordinary units in HomeCo at an issue price of $1.45 per unit.
The proceeds from the placement will be used to fund the acquisition of a 100% interest in the Town Centre Victoria Point shopping centre, located in Queensland.
Chairman of HMC, Simon Shakesheff said, "We are very pleased with the strong level of support from both existing and new investors in the institutional placement which is a great endorsement of our strategy and the acquisition of Town Centre Victoria Point.”
HMC views Town Centre Victoria Point as a large-scale asset with significant development upside through site development and expansion of existing tenancies. The acquisition is said to be consistent with HDN's strategy to acquire stabilised, predominately metro-located and convenience-based assets, targeting consistent and growing distributions.
The placement will settle on Thursday, 8 July 2021, with allotment and normal trading of the new units to occur on Friday, 9 July.
Shares in HomeCo Daily Need REIT (ASX:HDN)
are trading 3.3 per cent lower at $1.44.
Image from: https://www.home-co.com.au/about-home-consortium/