Home REIT, set up to provide accommodation to the homeless, has acquired 12 real estate portfolios in England for £64.3m (€69.6m).
As a result, the UK-listed real estate investment trust has deployed £115m since raising £240.6m in an initial public offering earlier this year.
The company said the properties would provide high quality accommodation for vulnerable, homeless people in need of housing, delivering critical solutions for women fleeing domestic abuse, prison leavers, those faced with homelessness due to poverty, and vulnerable people at risk of homelessness.
The announcement comes on the same day that Patron Capital and Resonance have launched a private fund to provide accommodation to vulnerable and homeless women.
The properties are let at low and sustainable rental levels, on new, unbroken, long-term, full repairing and insuring leases to six different specialist registered homeless charities and two housing associations, providing them with long term security of tenure.
The charities and housing associations, regulated by the Charities Commission and Regulator of Social Housing, respectively, will provide specialist care, training, support and rehabilitation to the vulnerable homeless people.
The rents received under the leases are subject to annual upward-only rent reviews, index-linked to the consumer prices index, subject to an annual collar and cap of 1% and 4%, respectively.
Home REIT has also secured a £120m interest-only debt facility with Scottish Widows on a 12-year term.
The company said it was close to acquiring more assets with the remaining £118m from its IPO and its £120m debt facility.
New acquisitions will increase tenant and geographic diversification, Home REIT said.
Jamie Beale, partner at Alvarium Home REIT Advisors, said: “Our portfolio of assets addresses a critical need within local communities and is let at low, sustainable rents to our tenant partners, who are proven to make a difference to the people they house, care for and support.
“All the rent payable by our tenants is funded by support from local and central government.”
A previous version of this article incorrectly stated that Home REIT raised £250m in its IPO. This was in fact its target.