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Baker McKenzie has advised Home Consortium on launching the initial public offering of a new real estate investment fund.
Firms: Baker McKenzie (Home Consortium); Gilbert + Tobin (underwriters)
Value: $300 million
Area: Equity, capital markets
Key players: The Bakers’ team was led by partner and head of equity, capital markets, Antony Rumboll, with assistance from David Jones, Lewis Apostolou, Caroline Tait, Daniel McGuiness, Eric Li, Belinda Goh, Madeleine McIntosh, Kate Jefferson, Tatjana Giutronich, Hugh Oliver, Rachel Davies, Sarah Merrett, Amrit MacIntyre, Janet Cho and Ruby Jenson.
The Gilbert + Tobin team was led by partner Adam D'Andreti.
Deal significance: According to a statement supplied by Baker McKenzie, HomeCo Daily Needs REIT “is to be established through a capital reduction of Home Consortium and effected via a distribution in specie of ordinary units in HomeCo Daily Needs REIT”.
“The transaction is conditional on securityholder approval, which is being sought at Home Consortium’s Annual General Meeting scheduled to be held on 18 Novmeber 2020. Trading of units in HomeCo Daily Needs REIT is expected to commence on 23 November 2020,” the firm’s statement said.
The firm noted that upon completion of the IPO, HomeCo Daily Needs REIT will own a portfolio of 17 properties located in metropolitan growth corridors across NSW, Victoria, Queensland, Western Australia and South Australia, independently valued at $844 million.
“Concurrent with the IPO process, Baker McKenzie also advised on registration of the HomeCo Daily Needs REIT as a managed investment scheme (and associated financial services matters) as well as the acquisition of three properties which will form part of the portfolio, with an aggregate value in excess of $220 million,” the firm’s statement added.
“This includes Glenmore Park Town Centre which, at $150 million, is the largest retail property acquisition of the year. The matter required close collaboration across the firm’s corporate, funds, real estate and stamp duty groups.”
Commenting further, Mr Rumboll said: “We are excited to be a part of HomeCo’s continued growth after having worked on its own successful IPO back in late 2019”.
“The substantial growth in HomeCo’s asset base and scale provides the foundation for the next phase of its ‘Own, Develop and Manage’ strategy,” he added.
“The establishment of HomeCo Daily Needs REIT creates the opportunity for unitholders to gain exposure to a vehicle focused on investing in stabilised, predominately metro-located and convenience based assets targeting consistent and growing distributions. We are proud to have played a part in that.”
