Home REIT raises €408m in oversubscribed capital hike

Home REIT, which funds the acquisition and creation of accommodation for the homeless across the UK, announced on Wednesday that it has raised gross proceeds of £350 mln (€408 mln) through a significantly oversubscribed issue of 321 million new ordinary shares at an issue price of 109 pence per share.

The offer size was increased from £262 mln to £350 mln as a result of 'the strong level of investors demand', and notwithstanding this increase, investor demand exceeded the maximum size of the Initial Issue and a scaling back exercise was undertaken, the company said.
Home REIT will deploy the net proceeds of the initial issue against the company’s £400 mln acquisition pipeline, representing thousands of new homes.

Lynne Fennah, Chairman of Home REIT, commented: 'We are grateful to our existing shareholders and new investors for their support which has led to strong demand and resulted in us raising an upsized amount of £350 mln. The proceeds of this capital raise will enable us to continue Home REIT’s mission of working with our tenant partners to provide critically needed accommodation for people at risk of homelessness in the UK in a sustainable way. Our focus now is to deploy the equity, growing the number of homes in the portfolio from our identified pipeline.'
Alvarium Securities acted as global coordinator, sole bookrunner, and intermediaries offer advisor in respect of the Initial Issue.


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