Further to the announcement of 16 May 2022, the Board of Home REIT, which funds the acquisition and creation of high-quality properties across the UK that are dedicated to providing suitable accommodation for homeless people, is pleased to announce that it has raised gross proceeds of approximately £263 million through a significantly oversubscribed Subsequent Placing of 228,899,083 New Ordinary Shares at an issue price of 115 pence per New Ordinary Share.

Given the strong level and quality of demand from investors in the capital raise, the Board determined to increase the size of the Subsequent Placing from the target of approximately £150 million to £263 million. Notwithstanding this increase, investor demand exceeded the maximum size of the Subsequent Placing and a scaling back exercise was undertaken. Following this Subsequent Placing, the Company has issued all the Ordinary Shares covered in its Placing Programme.

There is an ongoing critical need for homeless accommodation in the UK due to an increasing homeless population and a lack of available and affordable, high-quality, fit-for-purpose homes to address this societal issue. Home REIT aims to be part of the solution and will deploy the net proceeds of the Subsequent Placing into the Company’s attractive c. £300 million acquisition pipeline, representing hundreds of new homes for some of the most vulnerable members of society.

Lynne Fennah, Chairman of Home REIT plc, commented:

“The result of this oversubscribed fundraise, underpinned by strong demand from new and existing investors, is a further endorsement of Home REIT’s strategy, purpose and the compelling track record the team has built since inception just 18 months ago.  In that short time, we have created a portfolio offering over 8,500 beds to those who need them most and these new proceeds will enable us to continue our mission to provide critically needed housing, while scaling the Company and delivering on behalf of our increased shareholder base.”

Application for Admission

Applications have been made for admission of 228,899,083 New Ordinary Shares to the premium segment of the Official List of the Financial Conduct Authority and to trading on the premium segment of the main market of the London Stock Exchange. It is expected that admission in respect of the New Ordinary Shares will become effective, and that dealings in the New Ordinary Shares will commence, at 8.00 a.m. on 31 May 2022.

Total Voting Rights

On Admission, the Company’s issued share capital will consist of 790,570,465 Ordinary Shares and this is the total number of Ordinary Shares with voting rights in the Company. This figure may be used by Shareholders in determining the denominator for the calculation by which they will establish if they are required to notify their interest in, or a change to their interest in, the Company under the FCA’s Disclosure Guidance and Transparency Rules.

The New Ordinary Shares issued in connection with the Subsequent Placing will be fully paid and will rank pari passu in all respects with each other and with the existing ordinary shares of the Company, including, without limitation, the right to receive all dividends and other distributions declared, made or paid by reference to a record date after the date of Admission. For the avoidance of doubt, holders of New Ordinary Shares issued pursuant to the Subsequent Placing will not be entitled to receive the interim dividend of 1.37 pence per Ordinary Share announced by the Company on 5 May 2022 in respect of those shares. Capitalised terms have the meanings given to them in the Prospectus published by the Company on 2 September 2021 as supplemented by the supplementary prospectus published by the Company on 9 February 2022 unless otherwise defined in this announcement.

Alvarium Securities Limited acted as Global Coordinator and Sole Bookrunner in respect of the Subsequent Placing.