Australian fund manager HomeCo has acquired six retail assets for A$222m (€138m).

HomeCo’s Daily Needs (HDN) REIT bought the assets located in Victoria, NSW and Queensland, leased to national retailers.

The acquisition is to be part-funded by an A$88m fully-underwritten institutional placement.

HDN fund portfolio manager, Paul Doherty, said the acquired properties offer highly defensive and growing income streams via “long-term leases to major national tenants, high occupancy and embedded rental growth through fixed annual rental reviews of 3.3%”.

All of the properties offered future development potential given their low site coverage, he added.

The latest acquisition lifts the value of HDN’s portfolio to A$1.8bn, with the bulk of assets located in Victoria and NSW.

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