Business
£166.4 MILLION OF ACQUISITIONS
£166.4 MILLION OF ACQUISITIONS.
About this update from Home Reit Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 3057P\n Home REIT PLC\n 18 October 2021\n \n \n \n 18 October 2021\n \n Home REIT plc\n (\"Home REIT\" or the \"Company\")\n £166.4 MILLION OF ACQUISITIONS FOLLOWING OVERSUBSCRIBED 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 £166.4 million of the proceeds raised in the Company's significantly oversubscribed £350 million equity issue in September 2021 (the \"Initial Issue\").\n \n In less than one month following the Initial Issue, the Company has acquired 23 portfolios comprising 366 high quality properties located across England and Wales (the \"Properties\") for an aggregate purchase price of £166.4 million (including acquisition costs).\n \n The purchase of the Properties was made from the Company's attractive c. £400 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 equity raise and assembled through the Investment Adviser's deep network of relationships, according to the specific need within each local authority area.\n \n The Properties have added a further 1,850 beds to the portfolio bringing the total to just under 5,700, whilst further growing the geographic diversification of the portfolio across every region of England and including the Company's first acquisition in Wales. The acquisitions adhered to the Company's strict investment criteria, providing much needed accommodation for vulnerable homeless people across England and Wales. 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 12 different specialist registered homeless charities, including three that are new to the tenant base, 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 Each of the Properties is immediately income producing and the blended net initial yield of the Company's portfolio follow...