HomeCo snaps up two Sydney retail centres for A$220m and other APAC REIT news

ASX-listed Home Consortium has agreed to acquire two retail properties in western Sydney for A$220m, as it prepares to list its HomeCo Daily Needs REIT in November.

The Glenmore Park town centre is a Woolworths, Coles and ALDI anchored centre with over 40% of gross income derived from supermarkets, while the second property is a Woolworths-anchored, fully occupied centre.

The new purchases will grow the totals assets to about A$800m for the HomeCo Daily Needs REIT, which is targeting a late November listing following its AGM in mid-November.

Goldman Sachs and Macquarie Capital are financial advisors and joint lead managers on the listing, while Morgans Financial and Ord Minnett have also been appointed as joint lead managers.

“The property acquisitions announced today provide the HomeCo Daily Needs REIT with additional exposure to key growth corridors within the Western Sydney metropolitan area and will be important seed assets for the Daily Needs REIT,” said HomeCo executive chairman and CEO David Di Pilla.

HomeCo shares closed 2.42% higher to A$3.39 on Monday.

Mapletree NAC Trust teams up with Mapletree for S$528m Seoul office deal

Singapore-listed Mapletree North Asia Commercial Trust has teamed up with its sponsor Mapletree Investments to buy an office building in Seoul for S$528.4m, marking the trust’s first purchase in the capital.

The 20-storey Pinnacle Gangnam building is located at 119 Nonhyeon-dong in the Gangnam business district, a popular area for IT, technology, media, and fashion corporates.

Completed in 2011, the Grade A property features 44,444 sq.m. of gross floor area and is 89.6% occupied to local and international tenants from the IT, manufacturing, apparel and services sectors.

The REIT said South Korea had emerged as one of the most resilient economies in Asia Pacific amid the COVID-19 pandemic, with the third highest volume of commercial real estate investment in Asia Pacific in the first half of 2020.

“As MNACT’s first entry into Seoul, the co-investment with the sponsor provides a timely opportunity to acquire a freehold, premium Grade-A property in the GBD, and at an attractive yield spread that is distribution per unit accretive,” said Cindy Chow, CEO of the REIT’s manager. “Most of the leases at the property provide for annual rental escalations within the lease term, and together with the increasing office demand from high-growth tech-based sectors attracted to the GBD, the property is expected to provide a stable and growing income stream for MNACT.”

Mapletree North Asia Commercial Trust shares finished trading 3.35% higher at S$0.925 on Monday.

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