You are viewing 1 of your 1 free articles
Homelessness REIT seeks to raise £262m for further investment
A real estate investment trust (REIT) that purchases accommodation for homeless people has announced an intention to expand its portfolio through funds raised by shares.
Home REIT was launched in October last year with the stated aim of providing low-cost, fit-for-purpose accommodation to homeless people at risk, including victims of domestic violence, people leaving prison or foster care, and those suffering from mental health problems, drug and alcohol addiction.
Its initial public offering (IPO) raised £240m, all of which has since been spent, the company confirmed.
This week, Home REIT announced its intention to raise a further £262m for future investments through new ordinary shares, at an initial issue price of 109 pence per share.
The trust currently leases properties to 21 organisations across 81 different local authorities, including registered charities, housing associations and community interest groups that have a focus on support and rehabilitation programmes for tenants.
READ MORE
In January, the REIT secured a further £120m to support future acquisitions through a 12-month debt facility agreed with Scottish Widows – more than 70% of which has now been invested.
In a statement, Jamie Beale, partner at Alvarium Home REIT Advisors, said: “In the 10 months since our IPO in October last year, we have efficiently deployed the capital available to us in line with our investment strategy, which focuses on working with highly specialist operators to provide critically needed accommodation to people at risk of homelessness.
“As a result, we have continued to meet our objectives, ensuring a positive social impact for some of the most vulnerable members of society, while also delivering a strong performance on behalf of our investors, remaining well on track to reach our dividend target.”
Going forward, the trust’s members will be “closely monitoring an active pipeline of acquisition opportunities as we look to grow our capacity”, he added.
As of 31 July, Home REIT provides beds for 3,846 people in 711 properties across the UK, which ask an average rent of £91 per week. These are are subject to annual “upward-only” rent reviews capped at 4%.
The majority of its properties are in London (19.4%), followed by Yorkshire and the Humber (13.4%).
The trust has also purchased properties in the South West (12.1%), the North East (12%), the East Midlands (11.5%), West Midlands (10.9%), North West (9.9%), South East (6.0%) and the East of England (4.8%).
Home REIT has been valued on an individual property basis by independent valuer Knight Frank at £328m.
Sign up for our homelessness bulletin
Already have an account? Click here to manage your newsletters
