BMO Asset Management is planning to raise up to £250m (€293m) in a London listing for a supported housing accommodation investment company.
The manager intends to float Responsible Housing REIT on the London Stock Exchange at the end of September.
Responsible Housing REIT expects most of its acquired supported housing accommodation assets to be based in England, but will seek to acquire in other parts of the UK where suitable opportunities arise. The company expects to buy and create assets to cater for supported residents across a number of care sectors.
Robin Minter Kemp, chairman of Responsible Housing REIT, said: “Responsible Housing REIT offers the opportunity to invest in a much-needed social resource, where demand is on an upward trajectory and yet there is a lack of suitable Supported Housing accommodation to cater for these vulnerable groups.
“We believe that we can help meet this growing requirement with a leasing model that meets the specific needs of the sector aligned to the aims of the Social Housing Regulator. This will be an impact-led strategy, with a peer leading ESG framework, that also offers an attractive dividend underpinned by inflation-linked income supported by sustainable rents.”
Guy Glover, lead manager at BMO Asset Management, said: “We have been engaging extensively with stakeholders in the supported housing community, including registered providers, care providers and the social housing regulator, culminating in the Responsible Housing REIT model, which we believe offers a new and compelling proposition for investors.
“While local authorities have a statutory duty to provide for those in need of Supported Housing, the UK faces a shortage of suitable accommodation, underpinning our conviction in a strategy delivering a balance between all stakeholders to create a truly sustainable model.”
Home REIT seeks £262m fundraise
Home REIT, a provider of accommodation to the homeless, is seeking to raise £262m to buy further properties across the UK.
The UK-listed company, which raised £240m during its initial public offering in October last year, said the net proceeds of IPO were deployed within five months and the company has now also fully deployed or committed the £120m of its debt facility with Scottish Widows.
Home REIT said proceeds from the new fundraising will be used to fund future investments. The company has identified a £400m pipeline of further potential acquisitions.
Jamie Beale, partner at Alvarium Home REIT Advisors, said: “In the ten months since our IPO in October last year, we have efficiently deployed the capital available to us in line with our investment strategy, which focuses on working with highly specialist operators to provide critically needed accommodation to people at risk of homelessness.
“As a result, we have continued to meet our objectives, ensuring a positive social impact for some of the most vulnerable members of society, while also delivering a strong performance on behalf of our investors, remaining well on track to reach our dividend target.”
Lynne Fennah, chairman of Home REIT, said: “Having successfully established a strong and diversified portfolio since last October, Home REIT is well on track to meet the aims set out at IPO, in terms of the intended ethos, social impact and investor objectives.
“This initial issue and the acquisition of additional homes that it will enable will further advance the company’s mission as we continue to grow and work even more effectively towards alleviating homelessness across the UK in an affordable and, importantly, sustainable way.”
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