London-listed Home REIT, which funds the acquisition and creation of properties across the UK to accommodate homeless people, has deployed £166.4 mln of the proceeds raised in its latest £350 mln equity issue (€414 mln).
Following the initial issue in September 2021, the company has acquired 23 portfolios comprising 366 properties located across England and Wales for an aggregate purchase price of £166.4 mln.
The purchase was made from the firm's c. £400 mln acquisition pipeline, which has been under due diligence and legal negotiation since earlier this year.
Jamie Beale, partner at Alvarium Home REIT Advisors, said: 'Since announcing the results of its oversubscribed equity issue, the Company has been busy responsibly investing the proceeds into the pipeline of properties identified, efficiently deploying a sizeable portion of the funds into a portfolio generating long-term income on sustainable rents.
'Importantly, this latest tranche of properties will enable us to increase the amount of high quality accommodation we can provide members of society facing homelessness, working alongside our charity partners and local authorities, as we enter the colder months.'
The properties have added a further 1,850 beds to the portfolio bringing the total to just under 5,700, whilst further growing its geographic diversification across every region of England and including the company’s first acquisition in Wales.
The acquisitions adhered to the company's strict investment criteria, providing much needed accommodation for vulnerable homeless people across England and Wales.
They are let on an average lease length of 25 years at low and sustainable rents, on new, unbroken, long term, full repairing and insuring leases to 12 different specialist registered homeless charities, including three that are new to the tenant base, providing them with sought-after long term security of tenure.
The leases are subject to annual upward-only rent reviews, index-linked to the consumer prices index, with an annual collar and cap of 1% and 4% respectively.
