☕️ AirTrunk inspired

Good morning.

HMC’s David Di Pilla took inspiration from AirTrunk’s $24 billion sale earlier this year.

Now, he’s making a $1.93 billion move on Global Switch Australia, aiming to triple data centre capacity near Sydney’s CBD. With plans to turn 26MW into 88MW, Di Pilla is betting the prime location will attract top-tier clients, now that the site's Chinese ownership is out of the picture.

His play includes listing a DigiCo REIT on the ASX - possibly before Christmas – mostly made up of data centres in North America, to round out a global infrastructure portfolio. In time, Di Pilla says he “can see this being a $10-$20 billion opportunity for the group.”

As Capital Brief’s Dan Van Boom points out, the planned data centre REIT will be HMC’s third listed trust. Its most recent, a Healthcare and Wellness vehicle, is down 48% since its listing three years ago. But hey, fortune favours the bold, and the market humbles us all.

🏆 LOI Subscriber #TBD

Market movers

Reece shares took a dive Thursday after a weak first quarter, with sales down 5% to $2.23 billion and a gloomier earnings outlook between $300 million and $320 million—well below last year's $367 million.

The softer US market isn’t helping, with volumes and prices sinking fast. CEO Peter Wilson acknowledged the tough road ahead, warning challenges are piling up on both sides of the Pacific.

The quick sync

• ACCC disappoints fintechs and small businesses by taking no action on FX fees, leaving concerns over banks pricing transparency unaddressed. (Capital Brief)

• Dovetail CEO Benjamin Humphrey says building a product is the easy part of a startup, surviving AI competition might be the real test. (Capital Brief)

• Tesla shares skyrocketed almost 22% after strong Q3 earnings and a bullish 2025 sales forecast, fuelling a tech rally. (Capital Brief)

• Australia's job market defies expectations, stunning economists despite global risks and rate hikes. (Capital Brief)

• High-profile cases, think Super Retail and Seven Network, reignite debate over suppression orders and open justice tensions in Australia’s courts. (Capital Brief)

• Mineral Resources board members Chris Ellison and Tim Roberts allegedly bought discounted heavy machinery from the company for their New Zealand estate. (AFR)

• CBA and Westpac split from NAB, ANZ and lobby group to back strict borrower rules in place, citing need to protect first time buyers from excessive debt stress. (AFR)

Trading floor

M&A

• Fleet Space Technologies and Rio Tinto are collaborating to enhance lithium exploration at the Rincon Lithium Project in Argentina. (Capital Brief)

• Spark Infrastructure rethinks funding options after testing interest in its 17% stake in Connexa, with attention turning to its fibre assets as a potential source of capital. (The Australian)

• HMC Capital attempted to acquire a stake in Tilt Renewables as part of its $2b energy transition fund plans but the effort fell short, leaving it focused on raising capital for deals. (The Australian)

• Rex Airlines sells its Pel-Air ambulance business to Toll Holdings for $47.1m to repay secured debt amid ongoing administration. (Capital Brief)

• The ACCC raised competition concerns about Qube’s proposed acquisition of Melbourne’s automotive terminal MIRRAT, seeking feedback on proposed remedy. (Capital Brief)

• Allianz is exploring options for a potential merger or partial sale of its €555b Allianz Global Investors unit, eyeing a valuation over €4b, sources say. (Reuters)

• Regal's bid for Platinum Asset Management nears D-day, as Phil King weighs whether to raise the offer or walk away. (AFR)

• Former Goldman banker Scott Kapnick nears pivotal decision for his US$10b private credit firm HPS, options include a sale to BlackRock, an IPO or a stake sale to Middle Eastern investors. (FT)

Capital Markets

• HMC Capital is raising $300m to fund its $1.93bn purchase of Sydney data centre owner Global Switch Australia. (AFR)

• Symal is pricing its $150m IPO at $1.85 per share, valuing the company at $440m, and aiming for an ASX debut by the month’s end. (AFR)

• ReNerve is launching an IPO to raise $7m, aiming for an ASX listing in November and promoting its nerve-repair product, NervAlign. (AFR)

• Medtech star Vaxxas kicks off $100m raise to fund clinical trials for its needle-free vaccine patch, targeting a 2025-26 IPO. (AFR)

• HMC Capital mandates Goldman Sachs, UBS, Macquarie Capital and JPMorgan for $300m equity raise to fund its $1.93b purchase of Sydney’s Global Switch data centres. (AFR)

• Updates from Brambles, Reece and Reliance Worldwide are weighing on James Hardie's shares, which have lost 11.4% since late September, ahead of results on 12 November. (The Australian)

• Insignia Financial lifts funds under management and administration in Q1 despite $1b in net institutional outflows, driven by market gains. (Capital Brief)

• Australia's richest people 40 and under break record, with $41.7b accumulated wealth, led by tech entrepreneurs like Canva’s founders and crypto billionaire Ed Craven. (AFR)

• KKR’s Q3 profits soar 58% to $1.8b driven by record fee income, as assets under management hit US$624b. (Capital Brief)

• Barclays’ Q3 profits jumped 23% to £1.6b, driven by a surge in dealmaking, with investment banking fees up 58%. (Capital Brief)

• UniSuper denies claims it sold down its APA stake over gas concerns, citing portfolio rebalancing, as Beetaloo gas worries dominate a fiery shareholder meeting. (AFR)

• Qantas board member Todd Sampson remains a lightning rod for investor dissatisfaction, as questions linger over his future despite the airline's recovery. (AFR)

• Wells Fargo may lose US$2b to $3b on its CRE office loan portfolio, CEO says. (Reuters)

VC

• Heat exchange startup Conflux Technology raises $11m in Series B, led by Breakthrough Victoria, to scale additive manufacturing of heat exchangers for aerospace, EVs and sustainability sectors. (Startup Daily)

People moves

• WiseTech CEO Richard White steps down amid scandal, transitioning to $1m consulting role as the board, grappling with mounting allegations, begins global CEO search. (Capital Brief)

• Christian Beck has made more leadership changes at Leap Legal, following a major restructure eight months ago. (AFR)

• Westpac appoints Peter Herbert as acting business and wealth CEO, effective 5 November, as it conducts a global search. (Capital Brief)

The watercooler