Following the latest tranche of investments, since inception the Company has deployed a total of £0.7 billion at a weighted average net initial yield of 5.86 per cent., ahead of the Company's initial forecast and in-line with the Company's strict investment criteria, providing much needed accommodation for vulnerable homeless people across
The Properties are located across
As is the Company's purpose, the Properties provide these charities with sought-after long-term security of tenure and therefore much needed stability for their residents, supporting their reintegration into society. 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 per cent. and 4 per cent. respectively. The Company's offer provides significant savings to charities and local authorities versus more expensive alternative accommodation, such as B&Bs, which are short-term and inadequate for the needs of vulnerable homeless people.
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.
"Since inception we have developed a strong track record for deploying funds available to us efficiently and, more importantly, prudently, using our existing relationships to access suitable investment opportunities off market. This has enabled us to create a significant portfolio of tailored accommodation for homeless people in locations across
The Company's combined portfolio to date
* High quality, much needed accommodation for vulnerable, homeless people, providing critical housing solutions for people fleeing from domestic abuse, those faced with homelessness due to poverty, people suffering from drug and alcohol abuse and mental health issues, prison leavers and ex-armed forces.
* Low and sustainable rents across the portfolio, providing significant savings to local authorities compared to less suitable alternative accommodation.
* Let to registered charities, housing associations, community interest companies and other regulated organisations, which have a proven operating track record in providing low-cost accommodation to homeless people and a focus on care, support, training and rehabilitation to provide them with the skills and confidence to find long-term accommodation and enable them to reintegrate into society.
* All the rent payable by Home REIT's tenants is funded by support from local and central government.
* Providing 8,556 beds across 1,736 properties.
* Following the acquisition of the Properties, the Company's portfolio is further diversified across 118 different local authorities and 28 tenants, with the following geographical exposures (by asset value):
o
o North West: 14.7%
o
o North East: 13.2%
o
o South West: 9.8%
o
o South East: 6.4%
o East: 4.9%
o
FOR FURTHER INFORMATION, PLEASE CONTACT:
+44 (0)20 7016 6711
+44 (0)20 7016 6713
+44 (0)20 7016 6704
Eve Kirmatzis
Oliver Harrison HomeREIT@fticonsulting.com
+44 (0)20 3727 1000
The Company's LEI is: 213800A53AOVH3FCGG44.
For more information, please visit the Company's website: www.homereituk.com
About
There is a critical need for further accommodation for homeless people in the
The Company focuses on investing in and creating well-located properties that provide a sustainable level of rent for the tenant. Within the homeless accommodation assets, there is a focus on care, support, training and rehabilitation to provide vulnerable homeless people with the skills and confidence to find long-term accommodation and enable them to reintegrate back into society. Savings are expected to be made to local authorities and other providers of accommodation to homeless people via lower rents versus more expensive alternative accommodation.
The Company is listed on the premium segment of the Official List of the
END
.
(C) 2022 M2 COMMUNICATIONS, source