A real estate investment trust (REIT) that purchases homeless accommodation in the UK has made five separate acquisitions, taking its total investment to date to more than £50m.
Home REIT announced today that it has spent £41.6m on properties across England, building on its first round of acquisitions last month in which it spent £9m on another five properties.
The REIT, which raised £240m through an initial public offering in October, will let the properties at a low and sustainable rental level on new, unbroken 25-year fill-repairing and insuring leases to six different specialist registered homeless charities and one housing association.
Rents received under these lease are subject to annual upward-only rent reviews, index-linked to consumer price index (CPI) and subject to an annual collar and cap of 1% and 4% respectively.
Purchases announced to the stock market today include:
- £5.8m for two properties in west London for vulnerable women
- £9.2m on 22 properties in the West Midlands, North West and Yorkshire and the Humber for women fleeing domestic violence, prison leavers and those facing homelessness
- £5.1m for nine properties in the North West for women fleeing domestic abuse, prison leavers and those facing homelessness
- £2.7m on six properties in Yorkshire and the Humber for homeless individuals
- £18.8m for 97 properties across the North East to help local and national government to house vulnerable individuals at risk of homelessness
Jamie Beale, partner at Alvarium Home REIT Advisors, said: “Since listing on 12 October 2020, we are delighted to have now purchased over £50m of high-quality accommodation which will provide homes to approximately 800 vulnerable, homeless people across 141 properties.
“The properties will address a critical need within local communities to provide housing solutions at low sustainable rents to registered charities who are proven to make a difference to the people they house, care for and support.”