Home REIT has acquired 199 properties for homeless accommodation for £85.1m, as it continues to deploy the proceeds of its £263m equity raise in May.
The company has now deployed a total of £170m (66%) of the proceeds with this latest tranche, which adds a further 869 beds to its portfolio bringing the portfolio total to 10,421.
The latest properties are located across England and 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 and community interest companies, 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 properties were all acquired from the company’s £300m investment 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.
Charlotte Fletcher, partner at Alvarium Home REIT Advisors Limited, said: “This latest tranche of acquisitions represents a significant expansion of our portfolio and allows us to scale up our support for homeless people across the UK. The expeditious deployment of the proceeds of our significantly oversubscribed subsequent placing in May demonstrates the company’s impressive capacity to source attractive investment opportunities and the strength of our relationships with local stakeholders.”
Investment adviser update
Alex Baker has joined Gareth Jones and Charlotte Fletcher within the senior management team at Home REIT Advisors Limited, the investment adviser to the company. Baker is a chartered surveyor, qualifying at Cushman & Wakefield (formerly DTZ), and previously worked in the value-add fund management team at Fiera Real Estate (formerly Palmer Capital).
HOME : Home REIT expands with £85m acquisitions