Home REIT has acquired two portfolios of homeless accommodation properties for a total of £92.3m, its first deployment since its £263m equity issue in May 2022.
The company has acquired 183 properties located across England for £84.9m, and in a separate transaction bought 33 additional properties for £7.4m. In total, these have added a further 998 beds for people in need of housing to the portfolio, bringing the group’s portfolio total to 9,554.
The properties 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 specialist registered homeless charities, 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.
Gareth Jones, partner at Alvarium Home REIT Advisors Limited, said: “These acquisitions add high quality beds to our growing portfolio, which is consistent with our strategy of providing fit for purpose accommodation for people in the community facing homelessness. These transactions represent swift deployment of the equity we raised in an oversubscribed fundraise at the end of May into assets producing long-term, sustainable income. We continue to work closely with our tenant partners, who provide holistic support packages to the residents in our portfolio, to source accommodation in the areas where the need is most acute.”
HOME : Home REIT deploys £92m on 216 homeless properties