its ok i got it.Home Consortium readies for $1bn September IPO
UBS chief executive Matthew Grounds is one of the big names behind Home Consortium. Picture: Britta Campion
The Matthew Grounds and David Di Pilla-backed property group Home Consortium is hoping to lodge documents for its $1 billion-plus initial public offering in September as the savvy investors behind the company move to capitalise on thriving demand for real estate.
It is understood that the company that owns the sites of the former Woolworths hardware chain Masters is currently in discussions to select board members for the company ahead of its float, which is being worked on by JPMorgan, Credit Suisse and Goldman Sachs.
Suggestions in the market are that the company, which is run by Mr Di Pilla, a former UBS investment banker, and backed by the Australian boss of Swiss investment bank UBS, Mr Grounds, will mostly target retail investors for its float.
Retail investors are expected to be eager to back the deal as they search for stable, high yielding investment opportunities amid a low interest rate environment.
However, sources close to the company said it had not yet been determined whether the business would be exclusively pitched to retail investors alone, despite some expecting this to be the case.
On offer will be 30 freehold properties, which are largely located on the east coast of Australia and evenly split between Queensland, New South Wales and Victoria.
However, Home Consortium also owns three sites located in Perth.
The freehold sites represent about 1.1 million square metres of land and just under 35 per cent site coverage.
The company is understood to be currently preparing to receive expressions of interest from potential investors.
The Home Consortium was created in 2016 when Mr Di Pilla and his backers purchased a portfolio of properties from Woolworths that previously housed the failed Masters hardware stores.
The properties were re-leased with tenants including Aurrum Group, Spotlight Group and Chemist Warehouse. At the time, the group outlaid $725 million for the portfolio of 40 Masters freehold outlets, 21 Masters development projects and 21 Masters leasehold stores and injected capital into the properties to lift their value.
