Home REIT adds close to 1,000 beds to portfolio with €107m of acquisitions

The UK's Home REIT, which focuses on providing accommodation for homeless people, has added 998 beds to its portfolio through acquisitions totalling £92.3 mln (€107 mln).

Home REIT has deployed £84.9 mln of the net proceeds raised in the company’s recent £263 mln equity issue, which was carried out in May.

The firm acquired 183 properties located across England for an aggregate purchase price of £84.9 mln.

Previous to this, the company acquired 33 properties located in England for an aggregate purchase price of £7.4 mln shortly prior to the placing.

The majority of the purchases were made from the company's £300 mln acquisition pipeline, which has been under due diligence and legal negotiation since earlier this year.

The properties comprise a total of 998 beds for people in need of housing, and bring the portfolio total to 9,554, further enhancing the company’s geographic diversification.

The acquisitions adhered to the company's investment criteria, providing accommodation for vulnerable homeless people across England.

They are let on an average lease length of 25 years at low and sustainable rents, on new, unbroken, long term, full repairing and insuring leases to specialist registered homeless charities.

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

Each of the properties is immediately income producing and, following these transactions, the blended net initial yield of the company’s portfolio is ahead of initial expectations.

Gareth Jones, partner at Alvarium Home REIT Advisors, said: 'These acquisitions add high quality beds to our growing portfolio, which is consistent with our strategy of providing fit for purpose accommodation for people in the community facing homelessness.

'These transactions represent swift deployment of the equity we raised in an oversubscribed fundraise at the end of May into assets producing long-term, sustainable income.

'We continue to work closely with our tenant partners, who provide holistic support packages to the residents in our portfolio, to source accommodation in the areas where the need is most acute.'


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