This article is from the Australian Property Journal archive
David Di Pilla’s HMC Capital is capitalising on the unsatiated appetite for alternative real assets with three new funds valued over $2.5 billion in the works as private credit lending, renewable energy and digital infrastructure drive the company’s growth.
HMC posted a strong first half year pre-tax operating earnings of $202.2m, up 240% on the previous corresponding period, and pre-tax operating EPS of 51.9 cents, up 204% on the pcp.
Operating earnings after tax was $140.5m, significantly above the $57.8m in the pcp, and the statutory profit was $274.5m versus $35.2m in the pcp.
Managing director and CEO David Di Pilla said the result was supported by a significant profit contribution from the private equity division and growth in recurring funds management income.
The group’s assets under management increased by 45% to $18.5bn, which saw management fees jump by 209% to $126.5m, driven by private credit and digital infrastructure, including the recent IPO of the $4.3bn DigiCo Infrastructure REIT, which was the largest Australian IPO transaction in over six years.
Meanwhile the private lending platform reported a 14% growth in AUM driven by CRE lending business, with HMC focussed on the mid-market residential and industrial where credit quality remains highest.
“AUM increased by 45% which is a testament to our ability to execute large-scale and complex transactions in sectors attracting strong demand from investors both in Australia and globally.
“A key highlight for the half was the successful establishment of the $4.3bn DigiCo Infrastructure REIT which means HMC is now a global manager in the rapidly growing and opportunity rich data centre sector,” he added.
“During the half, we announced a marquee acquisition with HMC securing the Neoen Victoria renewable portfolio for $950m on highly attractive terms. Following this acquisition, we are on track to launch a $2bn institutional platform in the first half of 2025,” he continued.
HMC is capitalising on the wall of capital looking for a home and identify opportunities to match the different sources of capital and investor appetite.
Di Pilla said the group is seeing momentum pick-up in the real estate division which is on-track to establish three major new unlisted institutional funds which will add over $2.5 billion of potential AUM.
“Pleasingly, our existing listed and unlisted funds continue to deliver strong operational results supported by our high-quality operating capability.
“We are well positioned moving into the second half of the financial year with strong momentum in each of our growth platforms,” he continued.
An interim dividend of 6cps was declared, and 12cps guidance was provided for FY25.
