Home REIT hauls in £263m from another oversubscribed placing

Home REIT has raised £263m through another oversubscribed share placing. The REIT, which invests in accommodation for homeless people, had initially set a target of £150m – but raised it to £263m in the face of investor demand. “Notwithstanding this increase,” Home said, “investor demand exceeded the maximum size of the subsequent placing and a scaling back exercise was undertaken.” This resulted in 228,899,083 shares at an issue price of 115p per share. Home plans to deploy the net proceeds into its £300m acquisition pipeline, which would take its portfolio to more than £1bn. Chair Lynne Fennah said: “The result of this oversubscribed fundraise, underpinned by strong demand from new and existing investors, is a further endorsement of Home REIT’s strategy, purpose and the compelling track record the team has built since inception just 18 months ago.” At its IPO in October 2020 the REIT raised £240m, which was followed by a £120m debt facility from Scottish Widows. In September 2021 it raised a further £350m in another oversubscribed issue. It had targeted a raise of £262m. Fennah said: “In that short time, we have created a portfolio offering over 8,500 beds to those who need them most and these new proceeds will enable us to continue our mission to provide critically needed housing, while scaling the company and delivering on behalf of our increased shareholder base.” Home REIT currently has a diversified portfolio valued at £713.4m as at 28 February 2022, providing 8,556 beds to homeless people across the UK. It is let to 28 tenants across 118 local authorities in England. Since its launch it has delivered a 17% EPRA net return. To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews