Home REIT, which funds the acquisition and creation of high quality properties across the UK that are dedicated to providing suitable accommodation for the homeless, has issued a trading update and launched an Open Offer, Initial Placing, Intermediaries Offer and Offer for Subscription and Placing Programme to raise gross proceeds of approximately £262 million for further investment into accommodation for homeless people in the UK.
Home REIT launched with a successful IPO in October 2020 raising £240 million. In less than 10 months, it has built a £328 million portfolio (as at 31 July) and works with 21 tenants and 81 local authorities. Home REIT now provides over 3,800 beds to homeless people across the UK including, but not limited to, women fleeing domestic violence, people leaving prison, individuals suffering from mental health or drug and alcohol issues and foster care leavers.
In doing so, it has also delivered a 8.5% EPRA NTA / NAV total return to shareholders since launch.
With net proceeds from the IPO and debt now fully deployed or allocated, the Company is seeking to raise further capital to grow and expand its ability to provide fit for purpose accommodation for homeless people across the UK, in line with its IPO objectives, which it is fully on track to meet.
Jamie Beale, Partner at Alvarium Home REIT Advisors Limited, said:
“In the ten months since our IPO in October last year, we have efficiently deployed the capital available to us in line with our investment strategy, which focuses on working with highly specialist operators to provide critically needed accommodation to people at risk of homelessness. As a result, we have continued to meet our objectives, ensuring a positive social impact for some of the most vulnerable members of society, while also delivering a strong performance on behalf of our investors, remaining well on track to reach our dividend target.
“We are closely monitoring an active pipeline of acquisition opportunities as we look to grow our capacity and, further to the Company’s announcement on 20 July 2021 regarding a potential equity is