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 ~22,300 sqm site located 30km north-west of the Sydney CBD.
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.
Further information in relation to the property and the financial impact of this transaction will be provided following satisfaction of this condition.
This acquisition continues HomeCo’s expansion into high growth metropolitan geographies like the Western Sydney growth corridor.
Please refer to the acquisition update for more detail here.