Home REIT expands portfolio with £92.3m acquisition

Home REIT expands portfolio with £92.3m acquisition

Home REIT has added 998 beds to its portfolio for £92.3 million.

The REIT has acquired 183 properties located across England for an aggregate purchase price of £84.9 million in just over one month following its £263m equity raise in May.

In addition to this, the company acquired 33 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.

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.”