Home REIT, which funds the acquisition and creation of accommodation for the homeless across the UK, has announced a share offer to raise gross proceeds of approximately £262 mln (€305 mln) for further investment into the sector.
Home REIT launched with a successful IPO in October 2020 raising £240 mln. In less than 10 months, it has built a £328 mln portfolio and works with 21 tenants and 81 local authorities.
Home REIT currently provides over 3,800 beds to homeless people across the UK including, but not limited to, women fleeing domestic violence, people leaving prison, individuals suffering from mental health or drug and alcohol issues and foster care leavers.
With net proceeds from the IPO and debt now fully deployed or allocated, the firm said it was now seeking to raise further capital to grow and expand its ability to provide fit for purpose accommodation for the vulnerable.
Share offer
The new fundraising programme will comprise an open offer, initial placing, intermediaries offer and offer for subscription and placing programme. It will target existing and potential new shareholders.
The maximum number of new ordinary shares that may be issued pursuant to the initial issue and the placing programme is 550,000,000. The prospectus is expected to be published on or around 2 September.
Home REIT said it had identified a £400 mln pipeline of further potential acquisitions, which would help it not only meet the growing demand for accommodation but also provide local authorities with a more appropriate and affordable option to house vulnerable homeless people.
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.'
