Home REIT announced on Thursday that it has deployed a further £62.6 mln (€74 mln) of the proceeds raised in the company’s oversubscribed £350 mln equity issue carried out in September.
The company has acquired an additional 19 portfolios comprising 173 high quality properties located across England adding 829 beds to its portfolio. The assets are let on an average lease length of 25 years at low and sustainable rents, on new, unbroken, full repairing and insuring leases to 12 different specialist registered homeless charities.
The transactions bring the total spent by the company since the equity raising in September to £229 mln at a weighted average net initial yield of 5.91%.
‘We have now deployed around 65% of the proceeds raised in September, which reflects the continual work that our team puts into identifying suitable properties and the deep network of relationships that we can access to build our pipeline of investment opportunities,’ said Jamie Beale, Partner at Alvarium Home REIT Advisors. ‘As the need for accommodation for homeless people becomes ever more pressing in the wake of the pandemic, we’re pleased with the momentum that we have been able to build behind our deployment, while maintaining our purposeful and responsible approach to investment.’
