London Stock Exchange welcomes Home REIT plc to the Premium Segment of the Main Market
Home REIT plc has successfully raised £240.6 million through a placing, offer for subscription and intermediaries offer, and will trade under the ticker HOME. Home REIT’s Ordinary Shares will today will admitted to the premium segment of the Official List of the Financial Conduct Authority and to trading on the premium segment of the main market of the London Stock Exchange.
The Company will seek to contribute to the alleviation of homelessness in the UK, whilst targeting inflation-protected income and capital returns, by investing the net proceeds of the IPO within six to nine months of Admission into funding the acquisition and creation of a diversified portfolio of high-quality accommodation assets dedicated to providing accommodation for the homeless across the UK.
The accommodation assets will be let or pre-let on very long (typically 20 to 30 years) leases, containing inflation-linked or fixed uplift rent review provisions, 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 the homeless and which receive housing benefit or comparable support from local or central government to fund the provision of such accommodation to the homeless.
Home REIT will be managed by Alvarium Fund Managers (UK) Limited and advised by Alvarium Home REIT Advisors Limited (both members of the group trading as Alvarium Investments (formerly LJ Partnership), whose ultimate parent is Alvarium Investments Limited).
Home REIT is targeting a minimum annual dividend of 5.5 pence per Ordinary Share, starting from the financial period commencing 1 September 20211, with the potential to grow the dividend in absolute terms through upward-only inflation-protected long-term lease agreements. Home REIT is targeting a net total shareholder return of at least 7.5 per cent. per annum over the medium term.1
Alvarium Securities Limited (also a member of Alvarium Investments) is acting as sole broker, placing agent and intermediaries offer adviser to the Company.
Lynne Fennah, Chairman of Home REIT plc, commented:
"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."
Jamie Beale, Partner at Alvarium Home REIT Advisors Limited, said:
"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. We welcome our new shareholders and look forward to working with them and to deliver on our objective of providing secure inflation-protected income and capital returns to shareholders, whilst delivering a positive social impact."