This article is from the Australian Property Journal archive
HMC Capital is eyeing off a series of unlisted funds aimed at repositioning last-mile facilities as it continues to evolve into a diversified alternative asset manager, and says the investment environment is becoming more “conducive” following shifts in the macroeconomic landscape.
HMC, which in recent times has spun off a number of its assets into the ASX-listed HomeCo Daily Needs REIT and HealthCo Healthcare and Wellness REIT, posted first-half operating earnings of $24.9 million, of 8.3c per share.
HMC did not provide operating earnings per security (EPS) guidance for FY23 “given the uncertain nature of the timing of future transactional income”, but noted that the FY22 pre-tax operating EPS of 31.0c was “repeatable”.
It reaffirmed distributions guidance of 12.0c, in line with FY22.
“Our evolution into a more sophisticated and diversified alternative asset manager will allow us to take advantage of compelling opportunities which are emerging in an increasingly challenging operating and funding environment,” HMC managing director and CEO, David Di Pilla said.
HMC said the volume of capital deployment activity across its platform “materially slowed”, which has been a “deliberate move by HMC to protect capital and preserve funding capacity during a period of significant change in the macroeconomic landscape”.
Total assets under management rose 129% on the prior corresponding period to $6.2 billion, and circa $500 million of gross transactions were conducted in the half.
“HMC believes the investment environment is becoming more conducive. HMC is well placed to take advantage of opportunities which are now emerging across its growing and more diversified platform,” it said.
Di Pilla said the proposed last mile logistics unlisted fund is on-track to be established over the coming months.
“This will be HMC’s first unlisted institutional-focused fund. The target first close equity raising of $500 million will provide up to $1 billion of acquisition funding capacity. We believe this will be the first of a series of unlisted funds which will leverage our proven track record in repositioning strategic last mile real estate infrastructure.”
He said HMC is progressing its next unlisted institutional fund which will focus on large-scale healthcare and life sciences development precincts in partnership with our Healthcare REIT.
During the half it established its first private equity fund after a $300 million raising.
