Business
HOME REIT ACQUIRES 158 PROPERTIES FOR £57.4M
HOME REIT ACQUIRES 158 PROPERTIES FOR £57.4M.
About this update from Home Reit Plc
[{"type":"text","content":"\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 13 September 2022\n \n \n \n Home REIT plc\n \n \n \n (\"Home REIT\" or the \"Company\")\n \n \n \n HOME REIT ACQUIRES 158 PROPERTIES FOR £57.4 MILLION\n \n \n \n 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\n 158\n additional properties (the \"Properties\") located across England for an aggregate purchase price of £\n 57.4\n million (including acquisition costs). \n \n \n \n \n \n These acquisitions were funded by the net proceeds raised via the Company's oversubscribed £263 million equity issue in May 2022 (the \"Subsequent Placing\"), of which the Company has now deployed a total of £\n 227\n million (\n 88\n per cent.) of the proceeds. The acquisitions adhered to the Company's strict investment criteria, providing much needed accommodation for vulnerable homeless people across England.\n \n \n \n \n \n The Properties have added a further\n 711\n beds for those in need to the portfolio, bringing the portfolio total to\n 11,131\n and further enhancing the Company's geographic diversification. 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.\n \n \n \n \n \n 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. \n \n \n \n \n \n The purchase of the Properties was made from the Company's attractive c. £300 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.\n \n \n \n &n...