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Homelessness accommodation REIT secures £120m debt facility

A real estate investment trust (REIT) that purchases accommodation for homeless people has secured £120m to support future acquisitions, while continuing its acquisitions with 12 new properties being added to its growing portfolio.

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Picture: Getty
Picture: Getty
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A REIT that purchases accommodation for homeless people has secured £120m to support future acquisitions, while continuing its acquisitions with 12 new properties being added to its growing portfolio #UKhousing

Home REIT, launched in October 2020, has now purchased £115m worth of accommodation with space for roughly 1,700 homeless people, using funds from its initial public offering (IPO), which raised £240m.

In December 2020, the REIT purchased 12 properties across England for £64.3m, building on previous transactions in October and November 2020.

The trust, which aims to pay a 5.5% minimum annual dividend to investors, also agreed a £120m, 12-year debt facility with insurance company Scottish Widows, with an all-in rate of 2.1%.


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Home REIT, which is managed by Alvarium Investments, said the properties require “low and sustainable” average weekly rents of £78 per person per week across 36 local authorities.

The rents are subject to upward-only rent reviews and are index-linked to consumer price inflation with a minimum rate of 1% and a maximum increase of 4%.

The trust said it is in advanced stages of a “significant pipeline of further assets”, using the remaining £118m of its IPO proceeds and its new £120m debt facility.

Jamie Beale, partner at Home REIT, said: “Since listing in October, we are pleased to have carefully deployed nearly 50% of Home REIT’s IPO proceeds through the purchase to date of £115m of high-quality accommodation, providing homes to approximately 1,700 vulnerable homeless people.

“Our portfolio of assets addresses a critical need within local communities and is let at low, sustainable rents to our tenant partners, who are proven to make a difference to the people they house, care for and support. All the rent payable by our tenants is funded by support from local and central government.

“We are also pleased to have secured the 12-year £120m debt facility, which provides Home REIT with a long-dated senior financing package at a very low fixed rate whilst offering the company substantial flexibility in making future acquisitions, underlining the support for our strategy and strong sector fundamentals.”

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