Home REIT buys 158 properties for £57.4m

13th Sep 2022 07:41

(Sharecast News) - Home REIT, which helps to house homeless people, said it had bought 158 properties across England for £57.4m.

The company on Tuesday said the acquisitions were funded by the proceeds of its £263m equity issue in May, of which it has now used £227m.

Home said the properties have added a further 711 beds for those in need, bringing its portfolio total to 11,131.

The properties 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.

"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," Home REIT said.

Home provides accommodation for vulnerable, homeless people, including those fleeing domestic abuse, facing homelessness due to poverty, suffering from drug and alcohol abuse and mental health issues, prison leavers and ex-armed forces.

Reporting by Frank Prenesti at Sharecast.com