Home Consortium has settled on the purchase of a four year old shopping centre near Adelaide’s Parafield Airport (control tower pictured, top) to seed its Daily Needs REIT.
The Main Road North complex is costing $27.25 million from Cromwell Direct Property Fund.
On 3.7 hectares it includes 15,776 square metres of lettable area and 456 car parks.
HomeCo launched a $190m capital raising mid-year to fund it.
Parafield is non-residential suburb 12 kilometres north of the city.
The purchase price is a 3.71 per cent discount on the ($28.12m) April, 2020, valuation.
Daily Needs portfolio approaching $1b
Daily Needs REIT will hold a portfolio of 17 properties worth $844m.
It includes three neighbourhood shopping centres acquired from Woolworths for a total of $127.8m and the Aurrum Erina aged care investment, which cost $32.6m.
Its Weighted Average Lease Expiry is 8.4 years (story continues below).
HomeCo controls about 30 shopping centres created out of ex-Masters stores.
It is financially backed by the local Fried, Gance and Verrocchi families, whose businesses including Anaconda, Chemist Warehouse, Mountain Designs and Spotlight, are occupiers.
Aussie Home Loans founder John Symonds, Caledonia Private Investments’ Mark Nelson, Citi-bank director Chris Knoblanche, Cotton On’s Nigel Austin, Melbourne developer Michael Gannon, the Oatley family and recently retired UBS executives Matthew Grounds and Robbie Vanderzeil are also reported to have an interest.
Shares closed at $3.75 on Friday.
DPF portfolio shrinks to 10
Following the disposal of the Parafield asset, DPF holds 10 properties and has a 7.1 year WALE.
DPF head of Retail Funds Management, Hamish Wehl, said its “key objective is to provide investors with a monthly tax advantaged income stream combined with the potential for capital growth through investing in a diversified portfolio of quality assets.”
“The Fund has low gearing and currently pays investors a distribution yield of 5.9pc, which we believe is an attractive rate for investors, particularly retirees, who are looking for regular, reliable income and an alternative to putting their money into a bank account”.