Home REIT has spent £64.3m buying a further 12 portfolios of properties to add to its asset base.
The REIT, which listed in October, provides specialist accommodation to the homeless. Since launch it has spent £115m on properties, deploying just under half the capital it raised and providing accommodation to around 1,700 vulnerable homeless people.
The firm has also finalised a £120m interest-only debt facility with Scottish Widows. The facility has been secured on a 12-year term at 2.1% pa for the duration of the term. Home REIT, which is targeting a gearing of 35%, said the facility would provide it with substantial flexibility for future acquisitions.
The firm said it was in advanced talks to add more assets to portfolio to allow for the “efficient deployment” of both its remaining IPO proceeds and its £120m debt facility.
Home REIT’s portfolio currently totals some 315 properties spread across 36 local authorities. It is most exposed to the North East and North West, where 27.5% and 21.3% of its portfolio is situated.
Jamie Beale, partner at Alvarium, adviser to Home REIT, said: “Our portfolio of assets addresses a critical need within local communities and is let at low, sustainable rents to our tenant partners, who are proven to make a difference to the people they house, care for and support. All the rent payable by our tenants is funded by support from local and central government.”
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