Home REIT has continued its acquisition drive with the purchase of 158 additional properties for £57.4m.
The acquisitions were funded by proceeds raised in the company’s oversubscribed £263m equity issue in May 2022 (of which the company has now deployed a total of £227m or 88% of the proceeds).
The properties have added a further 711 beds to the portfolio of homeless accommodation, bringing the portfolio total to 11,131 beds across 2,308 properties. 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 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.
Each of the properties are immediately income producing and, following these transactions, the blended net initial yield of the company’s portfolio is ahead of expectations.
Gareth Jones, partner at Alvarium Home REIT Advisors Limited, said: “These acquisitions add high-quality beds to our expanding portfolio and are aligned with our strategy to provide tailored and fit-for-purpose accommodation for people across the UK facing homelessness. The transactions build on our strong track record of deploying funds swiftly and efficiently to secure assets that offer long-term sustainable income. As the societal challenge around homelessness becomes sadly more critical, we continue to source opportunities to grow the number of beds we can provide to help areas where this need is particularly acute.”
HOME : Home REIT continues portfolio expansion with £57m acquisitions