Home REIT, the recently launched REIT that funds the acquisition and creation of homeless accommodation, has acquired a further five portfolios of properties in England for a total of £41.6m.
The deal means that since its £240m initial public offering (IPO) on 12 October 2020, the group has invested more than £50m in accommodation that will house around 800 homeless people across 141 properties.
The five portfolios consist of 136 properties located in London, West Midlands, North West, Yorkshire and the Humber, and the North East, and provide accommodation to vulnerable, homeless people in need of housing, delivering critical solutions for women fleeing domestic violence, vulnerable women, prison leavers, and those faced with homelessness due to poverty.
Each of the properties is let at a low and sustainable rental level, on new, unbroken 25-year full repairing and insuring leases to six different specialist registered homeless charities and one housing association. The rents received under these leases are subject to annual upward-only rent reviews, index-linked to the Consumer Prices Index, subject to an annual collar and cap of 1% and 4%, respectively.
The company said it was in advanced legals on a significant pipeline of assets, with further acquisition announcements expected to be made shortly.
Jamie Beale, investment adviser, said: “The properties will address a critical need within local communities to provide housing solutions at low sustainable rents to registered charities who are proven to make a difference to the people they house, care for and support. We are also pleased to have acquired our first London assets, through opportunistic deals utilising our extensive network. All of the rent at the homeless accommodation will be funded by support from local and central government.”
HOME : Home REIT buys £41.6m of homeless accommodation