Home REIT has deployed £166.4m of the proceeds raised in its £350m equity issue less than a month ago.
The company has acquired 23 portfolios comprising 366 properties located across England and Wales and added a further 1,850 beds to the portfolio, bringing the total to 1,077 properties and just under 5,700 beds.
The acquisitions includes properties in every region of England, further growing the geographic diversification of the portfolio, and also includes the company’s first acquisition in Wales.
They are let on an average lease length of 25 years at low and sustainable rents, on new, unbroken, long term, full repairing and insuring leases to 12 different specialist registered homeless charities, including three that are new to the tenant base, providing them with sought-after long term security of tenure. The leases are subject to annual upward-only rent reviews, index-linked to the Consumer Prices Index, with an annual collar and cap of 1% and 4% respectively.
The purchase of the properties was made from the company’s £400m pipeline, which has been under due diligence and legal negotiation since earlier this year. This pipeline was in an advanced stage of preparation ahead of the equity raise.
Jamie Beale, partner at the investment adviser Alvarium Home REIT Advisors, said: “Since announcing the results of its oversubscribed equity issue, the company has been busy responsibly investing the proceeds into the pipeline of properties identified, efficiently deploying a sizeable portion of the funds into a portfolio generating long-term income on sustainable rents. Importantly, this latest tranche of properties will enable us to increase the amount of high quality accommodation we can provide members of society facing homelessness, working alongside our charity partners and local authorities, as we enter the colder months.”
HOME : Home REIT adds 366 properties to portfolio with £166.4m buy