HomeCo Outlays $160m for Neighbourhood Shopping Centre

HomeCo Daily Needs REIT has outlaid $160 million for a retail centre and development site in Brisbane’s south-east.

HomeCo Daily Needs REIT (HDN)—which was spun-out of David Di Pilla’s Home Consortium at the end of last year—picked up Town Centre Victoria Point on a fully leased yield of 4.75 per cent from a private family.

The suburban shopping centre was originally developed by Brisbane-based Lancini Property Group.

The acquisition was made possible after the successful raising of approximately $70 million, overseen by Macquarie Capital, through the issue of 48.3 million units at an issue price of $1.45.

In April, HDN secured a raising of $265 million which it said would be used for large-format retail assets in NSW, Victoria and Queensland.

HDN fund manager Paul Doherty said the asset's quality and scale had aligned with the REIT’s broader strategy and existing portfolio.

Its portfolio of more than $1.5 billion in assets is made up of mostly metro-based assets anchored by supermarkets, large-format retailers and healthcare services.

HDN's strategy is centred around acquiring well-located assets with varied tenancy mixes to cater for everyday household needs.

“This property is anchored by high-quality, strongly performing tenants on long-term leases with attractive organic growth,” Doherty said.

“It also offers significant long-term potential to drive enhanced returns through development by capitalising on the property’s significant expansion potential.”

The centre is currently anchored by national and listed tenants including Woolworths, Bunnings, Healius and Endeavour Group.

The large-scale 7.6ha site has low site coverage of 27 per cent and has significant development upside.

JLL agents Nick Willis and Sam Hatcher brokered the sale on behalf of the private group.

Since floating in November 2020, HDN has added more than $100 million of new assets to its portfolio, acquiring a Bunnings in Seven Hills, western Sydney, and the Coles-anchored Marsden Park Shopping Centre near Brisbane.

The trust has also completed new centre developments worth upwards of $20 million in Perth and Brisbane.

HDN has additional projects worth $22 million currently under way in its pipeline, including an Aldi-anchored extension to a HomeCo mall in Gregory Hills, south-west of Sydney.

The fund is now targeting inclusion in both the S&P/ASX 300 Index and global indices.