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A real estate investment trust (REIT) that purchases homeless accommodation in the UK has made five separate acquisitions, taking its total investment to date to more than £50m.
Home REIT announced today that it has spent £41.6m on properties across England, building on its first round of acquisitions last month in which it spent £9m on another five properties.
The REIT, which raised £240m through an initial public offering in October, will let the properties at a low and sustainable rental level on new, unbroken 25-year fill-repairing and insuring leases to six different specialist registered homeless charities and one housing association.
Rents received under these lease are subject to annual upward-only rent reviews, index-linked to consumer price index (CPI) and subject to an annual collar and cap of 1% and 4% respectively.
Purchases announced to the stock market today include:
Jamie Beale, partner at Alvarium Home REIT Advisors, said: “Since listing on 12 October 2020, we are delighted to have now purchased over £50m of high-quality accommodation which will provide homes to approximately 800 vulnerable, homeless people across 141 properties.
“The properties will address a critical need within local communities to provide housing solutions at low sustainable rents to registered charities who are proven to make a difference to the people they house, care for and support.”
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