Home REIT has now fully deployed the £350m it raised in September 2021, with £55.1m of new acquisitions.
The company has announced the acquisition of 240 additional properties, providing 880 beds for homeless people, bringing the portfolio total to 7,953.
The properties were acquired at a weighted average net initial yield of 5.9% and are let on an average lease length of 25 years on full repairing and insuring (FRI) leases to 10 different specialist registered homeless charities. 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.
Jamie Beale, partner at Alvarium Home REIT Advisors, said: “Having fully deployed the net proceeds of the Initial Issue in a short period of just over three months, we are very pleased to have met the targets we set ourselves at the time. Our portfolio of nearly eight thousand beds contributes to combating the endemic challenge of homelessness in the UK by offering stable and supportive environments to some of the most vulnerable people in society. We continue to maintain a strong pipeline of opportunities that meet the requirements of our distinct strategy and look forward to updating our investors shortly regarding the deployment of the company’s debt facility.”
Home REIT’s portfolio comprises 7,953 beds across 1,580 properties, diversified across 111 different local authorities and 26 tenants, with the following geographical exposures (by asset value):
- London: 17.0%
- Yorkshire and the Humber: 13.8%
- East Midlands: 13.0%
- North West: 12.8%
- North East: 12.4%
- South West: 10.0%
- West Midlands: 7.8%
- South East: 6.8%
- East: 5.2%
- Wales: 1.2%
HOME : Home REIT completes £350m acquisition spree