HomeCo buys Woolies centres, aged care property
The real estate trust sector’s new kid on the block, HomeCo, will pivot into aged care as it embarks on a $186 million deal-making spree that includes buying three neighbourhood centres from supermarket giant Woolworths.
HomeCo is diversifying its property assets.
HomeCo, whose hyper-convenience focused, large-format property model grew out of Woolworths' failed Masters hardware sites, is undertaking a $140 million capital raising and $30 million security purchase plan to fund the acquisitions, The Age and Sydney Morning Herald understands.
The company, run by former investment banker David Di Pilla, is in a trading halt until Friday as it works through details of the funding arrangements.
Woolies has agreed to sell three neighbourhood centres anchored by its supermarkets to HomeCo for $127.8 million.
At the same time, the property manager has struck a deal with Aurrum Erina residential aged care to buy its property for $32.59 million.
Another $25.5 million deal to purchase the Parafield Retail Complex which HomeCo announced on 23 June will also be included in the fresh funding round.
The transactions will boost the value of HomeCo’s 36 freehold centres to more than $1.2 billion, the company estimates.
The $140 million fully underwritten placement will be issued at a price of $2.88 per ordinary stapled security.
That represents a 4 per cent discount to the last close price of $3 per security on 30 June 2020 and a 6.8 per cent discount on the five-day volume average weighted of $3.09.