Home REIT has acquired 23 portfolios comprising 366 properties located across England and Wales for £166.4 million following its £350 million equity issue in September 2021.
The properties have added a further 1,850 beds to the portfolio bringing the total to just under 5,700, whilst further growing the geographic diversification of the portfolio across every region of England and including the company’s first acquisition in Wales.
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 12 different specialist registered homeless charities, including three that are new to the tenant base, 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.
“Since announcing the results of its oversubscribed equity issue, the company has been busy responsibly investing the proceeds into the pipeline of properties identified, efficiently deploying a sizeable portion of the funds into a portfolio generating long-term income on sustainable rents. Importantly, this latest tranche of Properties will enable us to increase the amount of high quality accommodation we can provide members of society facing homelessness, working alongside our charity partners and local authorities, as we enter the colder months,” said Jamie Beale, Partner at Alvarium Home REIT Advisors Limited.