Home REIT has raised just over £240.5m from its initial public offering (IPO).
The company, that will invest in a portfolio of homeless accommodation across the UK, will trade on the premium segment of the main market of the London Stock Exchange on 12 October 2020.
It is targeting inflation-protected income and capital returns through the leasing of property on very long (typically 20 to 30 years) leases, containing inflation-linked or fixed uplift rent review provisions, to registered charities, housing associations, community interest companies and other regulated organisations that receive housing benefit or comparable support from local or central government.
The IPO was the largest investment trust IPO of this year and the largest UK focussed REIT IPO for over three years.
Lynne Fennah, chairman, said: “We have a substantial, identified pipeline of high-quality, homeless accommodation assets that we expect to acquire and we will now work towards deployment of the net proceeds, providing our new shareholders with secure income and an attractive capital return and at the same time contributing to the fight against homelessness in the UK.”
Home REIT will be managed by Alvarium Fund Managers (UK) Limited and advised by Alvarium Home REIT Advisors Limited (both members of the group trading as Alvarium Investments – formerly LJ Partnership, whose ultimate parent is Alvarium Investments Limited).
Home REIT is targeting a minimum annual dividend of 5.5 pence per Ordinary Share, starting from the financial period commencing 1 September 2021, with the potential to grow the dividend in absolute terms through upward-only inflation-protected long-term lease agreements. Home REIT is targeting a net total shareholder return of at least 7.5% per annum over the medium term.
HOME : Home REIT raises £240.5m in IPO