Home REIT launches £150m fundraise for homelessness accommodation
Property investor Home REIT has announced the launch of a £150m fundraise to fuel its activity acquiring and creating accommodation for people experiencing homelessness.
A Home REIT development in Worcester
Sharelines
Property investor Home REIT has announced the launch of a £150m fundraiser to acquire and create accommodation for people experiencing homelessness #UKhousing #SocialHousingFinanceThe group will look to raise the targeted funds through a placement of ordinary shares at a price of 115 pence per share.
Home REIT said the share price represents a 5.7 per cent discount to the closing price of 122 pence per share last week and a 4.7 per cent increase on the rate in February this year.
Home REIT said it seeks to “deliver inflation-protected income and capital growth over the medium term through the acquisition and creation of high-quality homeless accommodation across the UK let on long-term, index-linked leases”.
The group said that negotiations are under way on a circa £300m pipeline of homelessness accommodation investment opportunities.
Read more
In a media statement, the group said: “All these properties have been identified off-market through the investment adviser’s extensive contacts and relationships and are under exclusivity at an average net acquisition yield of 5.84 per cent.”
Home REIT’s portfolio was valued at £713m in February 2022 and provides 8,556 beds to homeless people across the UK, with 118 local authorities.
It said it has delivered a 17 per cent return since February 2022.
In October 2020, it raised £240m from an initial public offering, then a further £350m in September 2021.
The group said it had launched the latest fundraise against the backdrop of increasing homelessness in the UK as a result of the cost of living crisis and the COVID-19 pandemic.
Lynne Fennah, chair of Home REIT, said: “This placing will significantly enhance our capacity to invest in the provision of high-quality accommodation for homeless people across the UK at a time of grave necessity.
“The proceeds will enable us to continue expanding our existing portfolio which is generating inflation-protected income, utilising our strong pipeline of off-market opportunities, and work with our local partners to provide essential long-term support to some of the UK’s most vulnerable people.”
The placing will close at 1pm on 26 May 2022.
- © Social Housing
- All rights reserved