The Matthew Grounds and David Di Pilla-backed property group Home Consortium hopes 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 Home Consortium, which owns the sites of the former Woolworths hardware chain Masters, is in discussions to select board members 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 Mr Grounds, the Australian boss of Swiss investment bank UBS, 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 that this will 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, NSW and Victoria. Home Consortium also owns three sites 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 preparing to receive expressions of interest from potential investors.
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.
Investor demand for real estate investment trusts is thriving, with groups raising more than $3bn in capital since March.
Yesterday, Cromwell Property Group became the latest to tap the market, securing $375m through an institutional placement executed through advisers UBS and Goldman Sachs.
An additional $30m will be sought through a security purchase plan.
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