Home REIT, the recently launched fund that focuses on providing accommodation to the homeless, has acquired a further 171 properties for £69.5m.
The acquisitions, in 11 separate portfolios, mean the company has now deployed £184m (or 78%) of the money raised in an IPO in October 2020.
The properties, which add a further 798 beds to the portfolio, are located in Yorkshire and the Humber, the East Midlands, the South West, London, the South East, the West Midlands, and the North West.
They are let at a low and sustainable rental level, on new, unbroken, long term, full repairing and insuring (FRI) leases to eight different specialist registered homeless charities and one specialist 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 cap of 4% and a collar of 1%.
The company said it was in advanced negotiations on a significant pipeline of assets to allow for the efficient deployment of its remaining IPO proceeds (around £48m) and the recently announced debt facility (£120m).
The portfolio
Following these acquisitions, the company’s portfolio now comprises 489 properties, housing around 2,500 people. The portfolio is diversified across 52 different local authorities and let to 14 different tenants.
HOME : Home REIT expands portfolio with £69.5m acquisitions