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Home REIT makes first acquisitions

Home REIT - Tackling homelessness - IPO

Home REIT, which is focused on providing accommodation to the homeless, has acquired its first properties since launching.

The group has bought a portfolio of five properties located across the North West, North East and Midlands regions of England.

The properties are recently completed and purpose-built to provide high quality accommodation to vulnerable, homeless people in need of housing, with four of the homes housing women fleeing domestic violence and the fifth home accommodating people leaving prison.

Home REIT has paid £9m for the properties, which are immediately income producing. They are let at a low and sustainable rental level, averaging £75 per person per week, on new, unbroken 25-year full repairing and insuring (FRI) leases to specialist registered homeless charities. The charities, regulated by the Charities Commission, will provide specialist care, training, support and rehabilitation to the vulnerable homeless people at the properties.

The rents are subject to annual upward-only rent reviews, index-linked to the Consumer Prices Index (CPI), subject to an annual cap and collar of 1% and 4%, respectively.

Home REIT is close to concluding deals on a “significant pipeline” as it looks to deploy the £240.5m it raised at IPO quickly.

QuotedData published an IPO note on Home REIT that explains the trust’s investment strategy in more detail. You can read it by clicking this link.

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