TIDMHOME
RNS Number : 4072R
Home REIT PLC
08 March 2021
8 March 2021
HOME REIT plc
("Home REIT" or the "Company")
ACQUISITIONS FOR A COMBINED PURCHASE PRICE OF GBP48.1
MILLION
FULL DEPLOYMENT OF EQUITY
PIPELINE OF INVESTMENTS TO BE MADE UTILISING GBP120 MILLION DEBT
FACILITY
The Board of Home REIT plc (ticker: HOME), which funds the
acquisition and creation of high-quality properties across the UK
that are dedicated to providing accommodation to the homeless, is
pleased to announce that the Company has acquired a further 11
separate portfolios of properties located across England (the
"Properties") for an aggregate purchase price of GBP48.1 million
(including acquisition costs).
The acquisition of these Properties, in combination with those
announced previously, represent the full investment of the net
proceeds of the Company's GBP240 million IPO on 12 October 2020.
The Company's combined portfolio comprises 572 completed or
unconditionally exchanged properties, representing a weighted
average net initial acquisition yield of 5.83 per cent.
The Company has significant remaining resources available
through its previously announced 12-year GBP120 million debt
facility, allowing it to continue to make further investments.
The Properties add a further 543 beds across 83 properties in
London, North East, North West, South East, South West and West
Midlands regions of England. The high quality Properties are let at
a low and sustainable rental level, on new, unbroken, long term,
full repairing and insuring ("FRI") leases to seven different
specialist registered homeless charities, providing them with long
term security of tenure, which the Investment Adviser believes is
crucial to rehabilitating vulnerable individuals and helping to
break the cycle of homelessness seen in short term accommodation.
The rents received under these leases are subject to annual
upward-only rent reviews, index-linked to the Consumer Prices
Index, subject to an annual collar and cap of one per cent. and
four per cent., respectively.
Each of the Properties is immediately income producing and the
blended net initial yield of the Company's portfolio following the
acquisition of the Properties is ahead of expectations.
Jamie Beale, Partner at Alvarium Home REIT Advisors Limited,
said :
"We are pleased to have exceeded expectations since listing on
12 October 2020 by fully and prudently deploying the net proceeds
of our successful IPO within only five months. This compelling
track record of careful deployment provides a strong foundation for
future growth and we look forward to updating the market on further
acquisitions to be made utilising the Company's low cost, long term
GBP120 million debt facility.
We have an attractive pipeline of acquisitions that will enable
us to continue to deliver a positive social impact for some of the
most vulnerable members of society, through providing critically
needed accommodation to those at risk of homelessness, let at low,
sustainable rents to our tenant partners, who are proven to make a
difference to the people they house, care for and support."
The Company's combined portfolio to date
-- High quality, much needed accommodation for vulnerable,
homeless people, providing critical housing solutions for women
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-servicemen.
-- Low and sustainable average weekly rents of GBP86 per week
-- Let to registered charities, housing associations, community
interest companies and other regulated organisations, which have a
proven operating track record in providing low-cost accommodation
to the homeless and a focus on care, support, training and
rehabilitation to provide vulnerable homeless people with the
skills and confidence to find long-term accommodation and enable
them to reintegrate back into society.
-- All the rent payable by Home REIT's tenants is funded by
support from local and central government.
-- Housing over 3,000 people in 572 properties.
-- Following the acquisition of the Properties, the Company's
portfolio is diversified across 66 different local authorities and
17 tenants (15 charities and two housing associations), with the
following geographical exposures (by asset value):
o South West: 15.3%
o East Midlands: 14.8%
o North East 14.3%
o West Midlands: 13.1%
o London: 12.0%
o North West: 11.8%
o South East: 7.0%
o Yorkshire and the Humber: 6.8%
o East: 4.9%
FOR FURTHER INFORMATION, PLEASE CONTACT:
Alvarium Home REIT Advisors Limited Via Maitland/AMO below
Jamie Beale / Gareth Jones
Alvarium Securities Limited
Mark Thompson +44 (0)20 7016 6711
Eddie Nissen +44 (0)20 7016 6713
Oliver Kenyon +44 (0)20 7195 1448
Maitland/AMO (Communications +44 (0)7747 113 930
adviser) homereit-maitland@maitland.co.uk
James Benjamin
The Company's LEI is: 213800A53AOVH3FCGG44.
For more information, please visit the Company's website:
www.homereituk.com
About Home REIT plc
Home REIT plc seeks to contribute to the alleviation of
homelessness in the UK, whilst targeting inflation-protected income
and capital returns, by funding the acquisition and creation of a
diversified portfolio of high-quality accommodation assets across
the UK which will be dedicated to providing accommodation to the
homeless. The accommodation assets will be let or pre-let on very
long (typically 20 to 30 years) leases, containing inflation-linked
or fixed uplift rent review provisions, to registered charities,
housing associations, community interest companies and other
regulated organisations which have a proven operating track record
in providing low-cost accommodation to the homeless and which
receive housing benefit or comparable support from local or central
government to fund the provision of such accommodation to the
homeless.
There is a critical need for further accommodation for the
homeless in the UK, due to an increasing homeless population and a
lack of available and affordable high-quality, fit-for-purpose
stock to address the problem. Local housing authorities are under a
statutory duty to secure accommodation for individuals who are
unintentionally homeless and in priority need but current
accommodation for the homeless is limited in quantum and often
sub-standard and uneconomical.
The Company focuses on investing in and creating well-located
properties that provide a sustainable level of rent for the tenant.
Within the homeless accommodation assets, there is a focus on care,
support, training and rehabilitation to provide vulnerable homeless
people with the skills and confidence to find long-term
accommodation and enable them to reintegrate back into society.
Savings are expected to be made to local authorities and other
providers of accommodation to the homeless via lower rents versus
more expensive alternative accommodation.
The Company is listed on the premium segment of the Official
List of the UK Financial Conduct Authority and its Ordinary Shares
were admitted to trading on the main market of the London Stock
Exchange, premium segment, on 12 October 2020.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ACQDKOBBFBKDCNK
(END) Dow Jones Newswires
March 08, 2021 02:00 ET (07:00 GMT)
Home Reit (LSE:HOME)
Historical Stock Chart
From Jun 2024 to Jul 2024
Home Reit (LSE:HOME)
Historical Stock Chart
From Jul 2023 to Jul 2024