Thursday 8 October 2020 10:34 am

Real estate investment trust Home REIT raises £240m through IPO to fund accommodation for homeless

Home Real Estate Investment Trust (REIT), which is planning to fund accommodation for homeless people across the UK, has raised £240.6m through a stock market listing.

Home REIT announced the result of its initial public offering this morning, and will begin trading on the London Stock Exchange on Monday. 

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The investment trust is seeking to fund the acquisition and creation of accommodation for homeless people in the UK, while also targeting inflation protected income and capital returns.

The properties will be let on long leases, of around 20 to 30 years, to registered charities, housing associations, community interest companies and other regulated organisations.

Home REIT will be managed by Alvarium Fund Managers and advised by Alvarium Home REIT Advisors.

It is targeting a minimum annual dividend of 5.5p per share from 1 September next year. Net total shareholder return is expected to be about 7.5 per cent a year over the medium term. 

Home REIT chairman Lynne Fennah said: “We are delighted with the strong response received from a broad range of high calibre investors to our initial public offering – the largest investment trust IPO of this year and the largest UK focussed REIT IPO for over three years. 

“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.”

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Jamie Beale, partner at Alvarium Home REIT Advisors Limited, added: “The success of the issue is a strong endorsement of the investment advisory team’s track record, specialist sector expertise and strong relationships, placing us in an ideal position to capitalise on the significant investment opportunity that now exists in in the UK homeless accommodation asset market.”