A new real estate investment trust (REIT) focused on providing accommodation for homeless people has raised more than £240m through an initial public offering (IPO).
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Shares in Home REIT will begin trading on the main market of the London Stock Exchange from Monday (12 October) after more than 240 million shares were issued at £1 each.
The REIT, which is backed by global investor Alvarium, has said it will invest in assets across the UK that are dedicated to housing homeless people, targeting “inflation-protected income and capital returns”.
Any homes acquired by the trust will be let on 20 to 30-year leases to housing associations, charities or community interest companies that have “a proven track record in providing low-cost accommodation to the homeless”.
Any accommodation let by the REIT will be paid for through housing benefit or similar local or central government support.
Home REIT said it would target a minimum annual dividend of 5.5p per share. The REIT will be managed by Alvarium Fund Managers and advised by Alvarium Home REIT Advisors.
Jamie Beale, a partner at Alvarium Home REIT Advisors, said that the IPO put the trust “in an ideal position to capitalise on the significant investment opportunity that now exists in in the UK homeless accommodation asset market”.
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