Homelessness REIT raises £263m through share placing

Home REIT said earlier this month that its portfolio had been valued at £713.4m, and new investment opportunities offered a net acquisition yield of 5.84%.

Home REIT has grown rapidly since its launch in October 2020. It lets properties to a range of organisations, including housing associations, charities and community-interest companies, typically on long-lease agreements of 20 to 30 years, with index-linked or fixed rental uplifts.

Last autumn, it acquired hundreds of new properties within a month, after the target of a share issue aimed at raising £262m increased to £350m because of demand. 

Lynne Fennah, who chairs Home REIT, said: “The result of this oversubscribed fundraise, underpinned by strong demand from new and existing investors, is a further endorsement of Home REIT’s strategy, purpose and the compelling track record the team has built since inception just 18 months ago.

“In that short time, we have created a portfolio offering over 8,500 beds to those who need them most, and these new proceeds will enable us to continue our mission to provide critically needed housing, while scaling the company and delivering on behalf of our increased shareholder base.”