HOME Consortium has settled its $27.25 million acquisition of the Parafield Retail Complex in South Australia, one of the seed assets for its new Daily Needs REIT.
HomeCo launched a $190 million raising in the middle of the year to fund the purchase, and the purchase of three convenience-based neighbourhood centres from Woolworths and an aged care facility.
Completed in May of 2016, the Parafield Retail Complex is a purpose-built retail facility located within the Parafield Airport precinct, 12 kilometres north of the Adelaide CBD.
The complex has a net lettable area of 15,776 sqm and is on 37,280 sqm of land with 456 car parking spaces.
On the sell side is Cromwell Funds Management. Head of retail funds management, Hamish Wehl, said the sale is “timely and further strengthens the fund’s portfolio metrics”.
The fund currently pays investors a distribution yield of 5.9%. At the end of September, the fund had a 7.1-year weighted average lease expiry across 11 assets, reducing to ten once the sale completes.
Home Consortium’s $300 million offering for its new Daily Needs REIT was fully underwritten, and the convenience and large format retail property spin-off trust is expected to begin trading on the ASX later in November.
The trust will be seeded with 17 properties valued at $844 million, with 98% occupancy and an 8.4 year weighted average lease expiry.
