Business
Acquisitions
Acquisitions.
About this update from Home Reit Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 0161S\n Home REIT PLC\n 11 November 2021\n \n \n \n 11 November 2021\n Home REIT plc\n (\"Home REIT\" or the \"Company\")\n FURTHER £63 MILLION DEPLOYED FOLLOWING SEPTEMBER EQUITY ISSUE\n 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 homeless people, announces that it has deployed a further £62.6 million of the proceeds raised in the Company's significantly oversubscribed £350 million equity issue in September 2021 (the \"Initial Issue\").\n \n £229 million 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 strict investment criteria, providing much needed accommodation for vulnerable homeless people across England and Wales. \n \n Since its announcement of 18 October 2021, the Company has acquired an additional 19 portfolios comprising 173 high quality properties located across England (the \"Properties\") for an aggregate purchase price of £62.6 million (including acquisition costs).\n \n The Properties add 829 beds to the portfolio, bringing the total to over 6,500, 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. 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.\n \n 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.\n \n \n Jamie Beale, Partner at Alvarium Home REIT Advisors Limited, said:\n \"We have now deployed around 65% of the proceeds raised in September, which reflects the continual work that our team puts into identifying suitable properties and the deep n...