Home REIT plc (ticker: HOME), which funds the acquisition and creation of high-quality properties across the UK that are dedicated to providing accommodation to homeless people, announces that it has deployed £84.9 million of the net proceeds raised in the Company’s significantly oversubscribed £263 million equity issue in May 2022 (the “Subsequent Placing”).

In just over one month following the Subsequent Placing, the Company has acquired 183 additional properties (the “Properties”) located across England for an aggregate purchase price of £84.9 million (including acquisition costs). 

The purchase of the Properties was made from the Company’s attractive c. £300 million acquisition pipeline, which has been under due diligence and legal negotiation since earlier this year. This pipeline was in an advanced stage of preparation ahead of the equity raise and assembled through the Investment Adviser’s deep network of relationships, according to the specific need within each local authority area.

In addition to this, the Company acquired 33 additional properties located in England for an aggregate purchase price of £7.4 million (including acquisition costs) shortly prior to the Subsequent Placing.

The Properties and earlier acquisitions referenced directly above have added a further 998 beds for people in need of housing to the portfolio, bringing the portfolio total to 9,554 and further enhancing the Company’s geographic diversification. The acquisitions adhered to the Company’s strict investment criteria, providing much needed 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, providing them with sought-after long-term security of tenure. 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 per cent. and 4 per cent. 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 Limited, 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.”