Housing investor adds 158 properties for £57m

Home REIT, the homeless accommodation investor, has acquired 158 properties across England for £57.4m.

The acquisitions across the country including properties in the North West, Yorkshire, East Midlands and West Midlands, adds 711 beds to its portfolio, bringing the total to 11,131.

The purchases were funded from the £263m equity fundraise back in May with 88%, of the proceeds now deployed.

The properties add another 711 beds to its portfolio, bringing the total to 11,131, ‘further enhancing the company’s geographic diversification.’

The properties 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, ‘providing them with sought-after long-term security of tenure.’

Home REIT said the properties will each be income producing immediately, and the blended net initial yield since the acquisitions have already performed ahead of its expectations.

The acquisitions were part of its “attractive” £300m pipeline, for which due diligence and legal negotiation has been underway since earlier in the year.

Gareth Jones, Partner at Alvarium Home REIT Advisors, said: “These acquisitions add high-quality beds to our expanding portfolio and are aligned with our strategy to provide tailored and fit-for-purpose accommodation for people across the UK facing homelessness.

“The transactions build on our strong track record of deploying funds swiftly and efficiently to secure assets that offer long-term sustainable income.

“As the societal challenge around homelessness becomes sadly more critical, we continue to source opportunities to grow the number of beds we can provide to help areas where this need is particularly acute.”

Shares in Home REIT were up 0.1% to 116.69 pence on Tuesday morning.