Home REIT has helped to provide 8,000 beds to tackle 'endemic challenges of homelessness'

A company has built up a portfolio of nearly 8,000 beds to help tackle the "endemic challenge of homelessness" in the UK.

Home REIT, which funds the acquisition and creation of properties to provide accommodation to homeless people, has deployed the remaining £55.1 million of the proceeds raised in the company's "significantly oversubscribed" £350 million equity issue in September 2021.

The company has acquired 240 additional properties for an aggregate purchase price of £55.1 million

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The statement said: "The properties are located across England, providing 880 beds for those in need, whilst bringing the portfolio total to 7,953 and further enhancing its geographic diversification.

Library image of a homeless person outside Victoria Station in London. Picture: PALibrary image of a homeless person outside Victoria Station in London. Picture: PA
Library image of a homeless person outside Victoria Station in London. Picture: PA

"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 10 different specialist registered homeless charities, which each meet the company's operational and financial criteria."

"As is the company's purpose, the properties provide these charities with sought-after long-term security of tenure and therefore much needed stability for their residents, supporting their reintegration into society."

Each of the properties is immediately income producing and, following these transactions, the blended net initial yield of the company's portfolio is ahead of expectations, the statement said.

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Jamie Beale, partner at Alvarium Home REIT Advisors Limited, said: "Having fully deployed the net proceeds of the initial issue in a short period of just over three months, we are very pleased to have met the targets we set ourselves at the time.

"Our portfolio of nearly eight thousand beds contributes to combating the endemic challenge of homelessness in the UK by offering stable and supportive environments to some of the most vulnerable people in society. We continue to maintain a strong pipeline of opportunities that meet the requirements of our distinct strategy and look forward to updating our investors shortly regarding the deployment of the company's debt facility."

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The company's combined portfolio to date provides accommodation for vulnerable, homeless people, providing critical housing for people fleeing from domestic abuse, those faced with homelessness due to poverty, people suffering from drug and alcohol abuse and mental health issues, prison leavers and ex-armed forces.

Following the acquisition of the properties, the company's portfolio is further diversified across 111 different local authorities and 26 tenants, with 13.8% of the properties by asset value based in Yorkshire and the Humber.

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