Home REIT plans to launch a sale of new shares to raise £262m as it draws close to investing all of its existing funds.
The REIT, which buys and develops accommodation for homeless people, expects to sell the new shares at 109p each. A prospectus is scheduled for this week.
Having completed its £240m IPO last October, Home REIT said in a trading update today that it has now invested all of the equity raised through that deal as well as more than 70% of its £120m, 12-year debt facility. The remainder of the debt line is earmarked for identified acquisitions.
The value of the company’s portfolio has increased by 6.8% since its IPO to £328m. The REIT now holds 3,846 beds in 711 properties, leased to operating partners at low and sustainable average rents of £91 per week.
Jamie Beale, partner at Alvarium Home REIT Advisors, said: “In the 10 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. We are closely monitoring an active pipeline of acquisition opportunities as we look to grow our capacity.”
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