Home REIT, the homeless accommodation investor, has fully invested the proceeds of its £240m initial public offering after the acquisition of 11 portfolios for £48.1m.
The group, which launched in October 2020, now has a portfolio of 572 homeless accommodation properties that represent an average net initial acquisition yield of 5.83%.
Significant remaining resources are available to the company through its 12-year £120m debt facility, allowing it to continue to make further investments.
The acquisitions announced today add a further 543 beds across 83 properties in London, North East, North West, South East, South West and West Midlands regions of England. They are let at a low and sustainable rental level, on new, unbroken, long term, full repairing and insuring leases to seven different specialist registered homeless charities. The long-term leases provide the charities with long term security of tenure, which the investment adviser believes is crucial to rehabilitating vulnerable individuals and helping to break the cycle of homelessness seen in short term accommodation.
The 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%.
Jamie Beale, partner at the investment adviser, said: “We are pleased to have exceeded expectations since listing on 12 October 2020 by fully and prudently deploying the net proceeds of our successful IPO within only five months. This compelling track record of careful deployment provides a strong foundation for future growth and we look forward to updating the market on further acquisitions to be made utilising the company’s low cost, long term £120 million debt facility.
“We have an attractive pipeline of acquisitions that will enable us to continue to deliver a positive social impact for some of the most vulnerable members of society, through providing critically needed accommodation to those at risk of homelessness, let at low, sustainable rents to our tenant partners, who are proven to make a difference to the people they house, care for and support.”
HOME : Home REIT fully invests IPO proceeds with £48.1m portfolio buy