Industry News

HomeCo daily needs REIT acquires Bunnings Seven Hills for $56 million

HomeCo Daily Needs REIT (ASX: HDN) has entered into a binding agreement to acquire Bunnings Seven Hills (NSW) for a purchase price of $56.0 million representing a passing yield of 5.1%.

Bunnings Seven Hills is a ~22,300m2 site located 30km north-west of the Sydney CBD, strategically located near the intersection of major arterial M2 and M7 roads in the Western Sydney growth corridor. Bunnings has been trading in this location for 10 years.

The acquisition is proposed to be fully debt funded and is expected to be immediately accretive to FY21 FFO per unit.

Gearing will remain within the target 30-40% range post-transaction. Completion is subject to Bunnings not exercising its pre-emptive right to acquire the asset from the vendor on the terms agreed with HDN.

The Bunnings Seven Hills acquisition by HDN increases the HomeCo Group’s exposure to the Western Sydney growth corridor in line with several other recent acquisitions.

This year, HomeCo has purchased assets aggressively including convenience-based retail centres previously owned by Woolworths and the latest Glenmore Park purchase for $150 million and Gregory Town Centre acquisitions.

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