Alvarium Home REIT Advisors plans to raise £250m (€279m) via shares on the London Stock Exchange by floating a new UK homeless housing real estate investment trust (REIT).
The investment adviser said Home REIT will seek to acquire or create new accommodation across the UK with a plan to let or pre-let the assets on 20 to 30-year leases to charities, housing associations and other organisations which provide low-cost accommodation to the homeless.
It will target net total shareholder return of at least 7.5% per year over the medium term.
The net proceeds from the fundraising is expected to be invested or committed within six to nine months following the expected admission on the London Stock Exchange in the middle of next month. Alvarium said it has identified A pipeline of assets worth over £350m.
Lynne Fennah, Chairman of Home REIT, said: “We believe a significant investment opportunity now exists in the UK homeless accommodation asset market and the Alvarium team has already identified a substantial pipeline of homeless accommodation assets that we, and the Alvarium team, consider are at low and sustainable rent levels.
“We aim to be part of the solution to the homelessness crisis in the UK, drawing on the Alvarium team’s sector specialist expertise to achieve our objective of delivering secure inflation-protected income and capital returns to shareholders, whilst delivering a positive social impact.”
Home REIT will be managed by Alvarium Fund Managers UK.
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