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Home REIT PLC on Tuesday said it has made further advancements in its acquisition pipeline, adding 711 beds to its portfolio.
The London-based homeless accommodation investor acquired 158 properties across England for £57.4 million, including costs.
The purchases were funded from the £263 million equity fundraise back in May. Home REIT said £227 million, 88%, of the proceeds are now deployed.
The properties add another 711 beds to its portfolio, bringing the total to 11,131, ‘further enhancing the company's geographic diversification’.
‘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, providing them with sought-after long-term security of tenure,’ it explained.
Home REIT said the properties will each be income producing immediately, and the blended net initial yield since the acquisitions have already performed ahead of its expectations.
The acquisitions were part of its ‘attractive’ £300 million pipeline, for which due diligence and legal negotiation has been underway since earlier in the year.
‘The transactions build on our strong track record of deploying funds swiftly and efficiently to secure assets that offer long-term sustainable income,’ commented Gareth Jones, partner at Alvarium Home REIT Advisors Ltd.
Shares in Home REIT were up 0.1% to 116.69 pence in London on Tuesday morning.
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