London real estate investor deploys £63m funding for homeless housing

London based real estate investment firm Home REIT PLC announced it has deployed a further £62.6m funding in order to provide homeless accommodation nationally.

The funding was enabled by the proceeds raised in the company’s “significantly oversubscribed” £350m equity issue in September 2021.

£229m of the net proceeds of the initial issue has now been deployed at a weighted average net initial yield of 5.91 per cent, ahead of the company’s pipeline forecast as disclosed during the initial issue and in line with the company’s investment criteria, providing accommodation for vulnerable homeless people across England and Wales.

Since its announcement of 18 October 2021, the company has acquired an additional 19 portfolios comprising 173 properties located across England for an aggregate purchase price of £62.6m.

The Properties add 829 beds to the portfolio, bringing the total to over 6.5k, whilst also further enhancing the geographic diversification of the portfolio.

They are let on an average lease length of 25 years at low and sustainable rents, on new, unbroken, full repairing and insuring leases to 12 different specialist registered homeless charities, providing them with sought-after long term security of tenure and therefore much needed stability for their residents.

Jamie Beale, partner at Alvarium Home REIT Advisors Limited, said: “We have now deployed around 65 per cent of the proceeds raised in September, which reflects the continual work that our team puts into identifying suitable properties and the deep network of relationships that we can access to build our pipeline of investment opportunities.

“As the need for accommodation for homeless people becomes ever more pressing in the wake of the pandemic, we’re pleased with the momentum that we have been able to build behind our deployment, while maintaining our purposeful and responsible approach to investment.”

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