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Triple Point REIT raises £200m
The social housing investment vehicle Triple Point has raised £200m, hitting the upper end of its target, and has started trading on the market.
The money was raised last Friday in the real estate investment trust’s (REIT) initial public offering (IPO), which was oversubscribed by investors.
The REIT will buy its first homes – five supported housing units – from another company in the Triple Point group, Pantechnicon Capital, for £17.9m.
At the time of writing, the price of shares in Triple Point Social Housing REIT had already risen sharply from 100 pence per share to 103 in just three days of trading, with £47m worth of shares sold.
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Chris Phillips, chair of the REIT, said: “We are delighted with the response which Triple Point Social Housing REIT has received on its initial public offering, with strong support from a broad range of investors.”
Mr Phillips, who is also chair of Places for People, added: “The combination of a steady, index-adjusted income stream from social housing assets, and in particular from supported housing, and our ability to provide forward financing for new developments, both securing deal flow for the company while addressing the chronic undersupply of suitable supported housing properties, makes this a compelling investment.”
Meanwhile, LXi REIT, which had until recently only invested in commercial property, has more than doubled the size of its social housing portfolio. It bought three care homes in Northern Ireland today for £14.9m, one of which has yet to be built. LXi will not be funding any development costs.
Civitas Social Housing, another REIT, also completed the purchase of seven supported housing properties for £4m from Falcon Housing Association in Yorkshire.
Several social housing REITs have launched recently, following on from the popularity among investors of Civitas, whose IPO was also oversubscribed when it floated on the stock market at the end of last year.
