Alvarium Investments has raised £240.5m in the first listing for a new REIT dedicated to providing accommodation to the homeless.
Home REIT shares were sold at 100p and the vehicle will be admitted to the London Stock Exchange on 12 October.
Alvarium announced its plans to float the REIT last month, aiming to raise £250m in an initial raise, with net proceeds to be invested or committed within six to nine months of the admission.
It is targeting total shareholder returns of at least 7.5% per annum over the medium term, as well as a minimum 5.5p annual dividend yield from September 2021.
Properties will be let on inflation-linked leases of 20 to 30 years. These will be let or prelet to registered charities, housing associations, community interest companies and other regulated organisations that receive housing benefit or comparable funding from local or central government.
The listing is the largest investment trust IPO of this year and the largest UK-focused REIT IPO for more than three years.
Lynne Fennah, chairman of Home REIT, said: “We have a substantial, identified pipeline of high-quality homeless accommodation assets that we expect to acquire and we will now work towards deployment of the net proceeds, providing our new shareholders with secure income and an attractive capital return and at the same time contributing to the fight against homelessness in the UK.”
Dickson Minto WS is the sole sponsor to the company. Alvarium Securities is sole broker, placing agent and intermediaries offer to the REIT.
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