Home REIT to raise €272m in London IPO

Home REIT, a new investment trust focused on homeless accommodation in the UK, announced on Wednesday that it is looking to raise £250 mln (€272 mln) in an initial public offering on the main market of the London stock exchange.

As part of the operation, the company will issue up to 250 million ordinary shares at an issue price of £1.00 apiece.

Following the issue, which is expected to complete on October 7, the company will be looking to spend the proceeds over the next six to nine months. It has already identified a ‘substantial pipeline of homeless accommodation assets off-market with a value of over £350 mln’.

Home REIT will seek to contribute to the alleviation of homelessness in the UK, while targeting inflation-protected income and capital returns, by investing in a diversified portfolio of assets across the UK which will be dedicated to providing accommodation to the homeless. The accommodation assets will be let or pre-let on very long (typically 20 to 30 years) leases.

Home REIT will be managed by Alvarium Fund Managers (and advised by Alvarium Home REIT Advisors, whose ultimate parent is the UK-based multi-family office group Alvarium Investments.

The company said that it is targeting a minimum annual dividend of 5.5 pence per Ordinary Share, and a net total shareholder return of at least 7.5% per annum over the medium term.


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