Home REIT deploys £166.4 million in property purchases

Home REIT deploys £166.4 million in property purchases

LONDON, UK: The Board of Home REIT plc has deployed £166.4 million in property purchases. Investment is made of the proceeds raised in the company’s significantly oversubscribed £350 million equity issue in September 2021.

In less than one month following the Initial Issue, the Company has acquired 23 portfolios comprising 366 high quality properties located across England and Wales for an aggregate purchase price of £166.4 million (including acquisition costs).

The purchase of the Properties was made from the Company’s attractive c. £400 million acquisition pipeline, which has been under due diligence and legal negotiation since earlier this year. This pipeline was in an advanced stage of preparation ahead of the equity raise and assembled through the Investment Adviser’s deep network of relationships, according to the specific need within each local authority area.

The Properties have added a further 1,850 beds to the portfolio bringing the total to just under 5,700, whilst further growing the geographic diversification of the portfolio 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 per cent and 4 per cent respectively.

Each of the Properties is immediately income producing and the blended net initial yield of the Company’s portfolio following the acquisition of the Properties is ahead of expectations.

Jamie Beale, Partner at Alvarium Home REIT Advisors Limited, 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.”


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