TIDMHOME
RNS Number : 0113V
Home REIT PLC
05 August 2022
5 August 2022
Home REIT plc
("Home REIT" or the "Company")
GBP85.1 MILLION OF ACQUISITIONS AND INVESTMENT ADVISER
UPDATE
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 homeless people, announces
that it has acquired 199 additional properties (the "Properties")
located across England for an aggregate purchase price of GBP85.1
million (including acquisition costs).
These acquisitions were funded by the net proceeds raised via
the Company's oversubscribed GBP263 million equity issue in May
2022 (the "Subsequent Placing"). The Company has now deployed a
total of GBP170 million (66 per cent.) of the proceeds of the
Subsequent Placing, including the tranche of acquisitions announced
on 4 July 2022.
The Properties have added a further 869 beds for those in need
to the portfolio, bringing the portfolio total to 10,421 and
further enhancing the Company's geographic diversification. The
acquisitions adhered to the Company's strict investment criteria,
providing much needed accommodation for vulnerable homeless people
across England. 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 specialist registered homeless
charities and community interest companies (CICs), 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.
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 purchase of the Properties was made from the Company's
attractive c. GBP300 million acquisition pipeline, which has been
under due diligence and legal negotiation since earlier this year.
This pipeline was in an advanced stage of preparation ahead of the
Subsequent Placing and assembled through the Company's deep network
of relationships, according to the specific need within each local
authority area.
Investment Adviser Update
The Board also announces that Alex Baker has joined Gareth Jones
and Charlotte Fletcher within the senior management team at Home
REIT Advisors Limited, the investment adviser to the Company. Alex
is a chartered surveyor, qualifying at Cushman & Wakefield
(formerly DTZ), and previously worked in the value-add fund
management team at Fiera Real Estate (formerly Palmer Capital).
Charlotte Fletcher, Partner at Alvarium Home REIT Advisors
Limited, said :
"This latest tranche of acquisitions represents a significant
expansion of our portfolio and allows us to scale up our support
for homeless people across the UK. The expeditious deployment of
the proceeds of our significantly oversubscribed Subsequent Placing
in May demonstrates the Company's impressive capacity to source
attractive investment opportunities and the strength of our
relationships with local stakeholders. We are excited to welcome
Alex to the management team and are confident that his appointment
will further bolster our ability to deliver strong returns to
investors whilst also fulfilling a pressing social need."
The Company's combined portfolio to date
-- High quality, much needed accommodation for vulnerable,
homeless people, providing critical housing solutions 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.
-- Low and sustainable rents across the portfolio, providing
significant savings to local authorities compared to less suitable
alternative accommodation.
-- 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 homeless people and a focus on care, support, training and
rehabilitation to provide them with the skills and confidence to
find long-term accommodation and enable them to reintegrate into
society.
-- All the rent payable by Home REIT's tenants is funded by
support from local and central government.
-- Providing 10,421 beds across 2,150 properties.
-- Following the acquisition of the Properties, the Company's
portfolio is further diversified across 126 different local
authorities and 28 tenants, with the following geographical
exposures (by asset value):
o London: 16.1%
o North West: 14.8%
o North East: 13.4%
o Yorkshire and the Humber: 13.2%
o East Midlands: 11.6%
o South West: 8.9%
o West Midlands: 7.9%
o South East: 7.3%
o East: 5.9%
o Wales: 0.9%
FOR FURTHER INFORMATION, PLEASE CONTACT:
Alvarium Home REIT Advisors Via FTI Consulting below
Limited
Gareth Jones
Charlotte Fletcher
Alex Baker
Alvarium Securities Limited
Mark Thompson +44 (0)20 7016 6711
Eddie Nissen +44 (0)20 7016 6713
Oliver Kenyon +44 (0)20 7016 6704
FTI Consulting (Communications HomeREIT@fticonsulting.com
Adviser) +44 (0)20 3727 1000
Dido Laurimore
Eve Kirmatzis
Ellie Perham-Marchant
Oliver Harrison
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 are dedicated to providing accommodation to homeless
people. The accommodation assets are 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 homeless people and which
receive housing benefit or comparable support from local or central
government to fund the provision of such accommodation to homeless
people.
There is a critical need for further accommodation for homeless
people 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 homeless people 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 homeless people 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
ACQSSWFALEESEIA
(END) Dow Jones Newswires
August 05, 2022 02:00 ET (06:00 GMT)
Home Reit (LSE:HOME)
Historical Stock Chart
From Oct 2024 to Nov 2024
Home Reit (LSE:HOME)
Historical Stock Chart
From Nov 2023 to Nov 2024
