UK Investment Guides Loader

Home REIT deploys half of £241m IPO proceeds for homeless

written by Bella Palmer

The company said the properties would provide high quality accommodation for vulnerable, homeless people in need of housing

Home REIT, set up to provide accommodation to the homeless, has acquired 12 real estate portfolios in England for £64.3m (€69.6m).

As a result, the UK-listed real estate investment trust has deployed £115m since raising £240.6m in an initial public offering (IPO) earlier this year.

The company said the properties would provide high quality accommodation for vulnerable, homeless people in need of housing, delivering critical solutions for women fleeing domestic abuse, prison leavers, those faced with homelessness due to poverty, and vulnerable people at risk of homelessness.

The announcement comes on the same day that Patron Capital and Resonance have launched a private fund to provide accommodation to vulnerable and homeless women.

The properties are let at low and sustainable rental levels, on new, unbroken, long-term, full repairing and insuring leases to six different specialist registered homeless charities and two housing associations, providing them with long term security of tenure.

The charities and housing associations, regulated by the Charities Commission and Regulator of Social Housing, respectively, will provide specialist care, training, support and rehabilitation to the vulnerable homeless people.

The rents received under the leases are subject to annual upward-only rent reviews, index-linked to the consumer prices index, subject to an annual collar and cap of 1% and 4%, respectively.

Home REIT has also secured a £120m interest-only debt facility with Scottish Widows on a 12-year term.

The company said it was close to acquiring more assets with the remaining £118m from its IPO and its £120m debt facility.

New acquisitions will increase tenant and geographic diversification, Home REIT said.


This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Share this post with friends!