HOMECO DAILY NEEDS REIT — Capital/Financing Update 2021

Apr 18, 2021

Proposed issue of securities

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Announcement Summary

Entity name

HOMECO DAILY NEEDS REIT

Announcement Type

New announcement

Date of this announcement

Monday April 19, 2021

The Proposed issue is: An accelerated offer

Total number of +securities proposed to be issued for an accelerated offer

Maximum Number of ASX +security code +Security description +securities to be issued HDN ORDINARY UNITS FULLY PAID 214,855,476

Trading resumes on an ex-entitlement basis (ex date)

Wednesday April 21, 2021

+Record date

Wednesday April 21, 2021

Offer closing date for retail +security holders

Friday May 7, 2021

Issue date for retail +security holders

Friday May 14, 2021

Refer to next page for full details of the announcement

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Part 1 - Entity and announcement details

1.1 Name of +Entity

HOMECO DAILY NEEDS REIT

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

1.2 Registered Number Type

Registration Number

ARSN 645086620

1.3 ASX issuer code

HDN

1.4 The announcement is

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New announcement

1.5 Date of this announcement

Monday April 19, 2021

1.6 The Proposed issue is:

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An accelerated offer

1.6b The proposed accelerated offer is

Accelerated non-renounceable entitlement offer (commonly known as a JUMBO or ANREO)

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Part 3 - Details of proposed entitlement offer issue

Part 3A - Conditions

3A.1 - Are any of the following approvals required for the entitlement offer to be unconditional? +Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval FIRB approval Another approval/condition external to the entity

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No

Part 3B - Offer details

Class or classes of +securities that will participate in the proposed issue and class or classes of +securities proposed to be issued

ASX +security code and description

HDN : ORDINARY UNITS FULLY PAID

Is the proposed security a 'New class' (+securities in a class that is not yet quoted or recorded by ASX) or an 'Existing class' (additional securities in a class that is already quoted or recorded by ASX)? Existing class

Will the proposed issue of this +security include an offer of attaching +securities? No

If the entity has quoted company options, do the terms entitle option holders to participate on exercise? No

Details of +securities proposed to be issued

ASX +security code and description

HDN : ORDINARY UNITS FULLY PAID

ISIN Code (if Issuer is a foreign company and +securities are non CDIs)

ISIN Code for the entitlement or right to participate in the offer (if Issuer is foreign company and +securities are non CDIs)

Offer ratio (ratio to existing holdings at which the proposed +securities will be issued)

Has the offer ratio been determined? Yes

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The quantity of additional +securities For a given quantity of +securities to be issued held 100 236

What will be done with fractional Maximum number of +securities entitlements? proposed to be issued (subject to rounding) Fractions rounded down to the nearest 214,855,476 whole number or fractions disregarded

Offer price details for retail security holders

Has the offer price for the retail offer been determined? Yes

In what currency will the offer be What is the offer price per +security made? for the retail offer? AUD - Australian Dollar AUD 1.29500

Offer price details for institutional security holders

Has the offer price for the institutional offer been determined? Yes

In what currency will the offer be What is the offer price per +security made? for the institutional offer? AUD 1.29500 AUD - Australian Dollar

Oversubscription & Scale back details

Will individual +security holders be permitted to apply for more than their entitlement (i.e. to over-subscribe)? No

Will a scale back be applied if the offer is over-subscribed? No

Will these +securities rank equally in all respects from their issue date with the existing issued +securities in that class? Yes

Part 3D - Timetable

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3D.1a First day of trading halt

Monday April 19, 2021

3D.1b Announcement date of accelerated offer

Monday April 19, 2021

3D.2 Trading resumes on an ex-entitlement basis (ex date)

Wednesday April 21, 2021

3D.5 Date offer will be made to eligible institutional +security holders

Monday April 19, 2021

3D.6 Application closing date for institutional +security holders

Monday April 19, 2021

3D.8 Announcement of results of institutional offer

(The announcement should be made before the resumption of trading following the trading halt)

Tuesday April 20, 2021

3D.9 +Record date

Wednesday April 21, 2021

3D.10a Settlement date of new +securities issued under institutional entitlement offer

Monday May 3, 2021

3D.10b +Issue date for institutional +security holders

Tuesday May 4, 2021

3D.10c Normal trading of new +securities issued under institutional entitlement offer

Wednesday May 5, 2021

3D.11 Date on which offer documents will be sent to retail +security holders entitled to participate in the +pro rata issue

Monday April 26, 2021

3D.12 Offer closing date for retail +security holders

Friday May 7, 2021

3D.13 Last day to extend retail offer close date

Tuesday May 4, 2021

3D.16 Entity announces results of retail offer, including the number and percentage of +securities taken up by existing retail +security holders.

Wednesday May 12, 2021

3D.19 +Issue date for retail +security holders

Friday May 14, 2021

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Part 3E - Fees and expenses

3E.1 Will there be a lead manager or broker to the proposed offer? Yes

3E.1a Who is the lead manager/broker? Goldman Sachs Australia Pty Ltd

3E.1b What fee, commission or other consideration is payable to them for acting as lead manager/broker?

The manager will receive a management fee of 0.25% of the institutional and retail entitlement offer proceeds.

3E.2 Is the proposed offer to be underwritten? Yes

3E.2a Who are the underwriter(s)?

Goldman Sachs Australia Pty Ltd 3E.2b What is the extent of the underwriting (ie the amount or proportion of the offer that is underwritten)? Fully underwritten with the exception of the entitlement of Home Consortium Limited which is the subject of a binding pre-commitment. 3E.2c What fees, commissions or other consideration are payable to them for acting as underwriter(s)? Goldman Sachs Australia Pty Ltd will receive an underwriting fee equal to 2.25% of the institutional and retail entitlement offer proceeds. 3E.2d Please provide a summary of the significant events that could lead to the underwriting being terminated Please refer to pages 34 to 36 of the ASX investor presentation released by HDN on 19 April 2021.

3E.2e Is a party referred to in listing rule 10.11 underwriting or sub-underwriting the proposed offer? Yes

3E.2e (i) What is the name of that party?

Home Consortium Developments Limited

3E.2e (ii) What is the extent of their underwriting or sub-underwriting (ie the amount or proportion of the offer they have underwritten or sub-underwritten)? Approximately 10% of the entitlement offer, representing a commitment of $26.7 million

3E.2e (iii) What fee, commission or other consideration is payable to them for acting as underwriter or sub-underwriter? Home Consortium Developments Limited will receive an underwriting fee equal to 1.5% of its sub-underwriting commitment, payable by the lead manager. 3E.3 Will brokers who lodge acceptances or renunciations on behalf of eligible +security holders be paid a handling fee or commission? No

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3E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed offer

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Part 3F - Further Information

3F.1 The purpose(s) for which the entity intends to use the cash raised by the proposed issue

To fund the acquisition of assets and associated transaction costs

3F.2 Will holdings on different registers or subregisters be aggregated for the purposes of determining entitlements to the issue?

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No

3F.3 Will the entity be changing its dividend/distribution policy if the proposed issue is successful? No

3F.4 Countries in which the entity has +security holders who will not be eligible to participate in the proposed issue

Retail unitholders - all countries other than Australia and New Zealand.

Institutional unitholders - all countries other than Australia, New Zealand, Hong Kong and Singapore.

3F.5 Will the offer be made to eligible beneficiaries on whose behalf eligible nominees or custodians hold existing +securities Yes

3F.5a Please provide further details of the offer to eligible beneficiaries

Retail Entitlement Offer is available to nominees/custodians with a registered address in Australia or New Zealand who are registered unitholders at 7:00pm on Wednesday, 21 April 2021 and who hold units on behalf of underlying beneficial holders (wherever they reside), except to the extent such beneficial holders are not eligible retail unitholders.

Retail Entitlement Offer is not available to registered unitholders in the United States of America or who are, or are acting for the account or benefit of, persons in the United States of America.

3F.6 URL on the entity's website where investors can download information about the proposed issue

https://hdn.home-co.com.au/Investor-Centre/?page=asx-announcements

3F.7 Any other information the entity wishes to provide about the proposed issue

Unitholders or investors who are issued new units under the offer (New Units) will also receive, without any further action, up to 1 bonus unit (Bonus Unit) for every 20 New Units issued to them, provided they hold a number of units in excess of their holding as at the Record Date, on 16 August 2021 (being the date 3 months after the issue of New Units under the Retail Entitlement Offer). Up to a total of 10,231,213 Bonus Units may be issued.

Refer to (i) the announcement and Investor Presentation released to ASX on Monday, 19 April 2021 and (ii) the Retail Entitlement Offer Booklet expected to be released on Monday, 26 April 2021, for further details relating to the issue of Bonus Units.

3F.8 Will the offer of rights under the rights issue be made under a disclosure document or product disclosure statement under Chapter 6D or Part 7.9 of the Corporations Act (as applicable)? No

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