Home REIT plc has acquired 199 additional properties located across England for an aggregate purchase price of €101m (£85.1m). The properties have added a further 869 beds for those in need to the portfolio, bringing the portfolio total to 10,421 and further enhancing the company's geographic diversification. The acquisitions adhered to the company's strict investment criteria, providing much-needed accommodation for vulnerable homeless people across England. They are let on an average lease length of 25 years at low and sustainable rents, on new, unbroken, long-term, full repairing and insuring leases to specialist registered homeless charities and community interest companies (CICs), providing them with the sought-after long-term security of tenure. The leases are subject to annual upward-only rent reviews, index-linked to the Consumer Prices Index, with an annual collar and cap of 1% and 4% respectively. Each of the properties is immediately income producing and, following these transactions, the blended net initial yield of the company's portfolio is ahead of expectations.
Charlotte Fletcher, Partner at Alvarium Home REIT Advisors Limited, said: "This latest tranche of acquisitions represents a significant expansion of our portfolio and allows us to scale up our support for homeless people across the UK. The expeditious deployment of the proceeds of our significantly oversubscribed Subsequent Placing in May demonstrates the Company's impressive capacity to source attractive investment opportunities and the strength of our relationships with local stakeholders. We are excited to welcome Alex to the management team and are confident that his appointment will further bolster our ability to deliver strong returns to investors whilst also fulfilling a pressing social need."