Home REIT acquires €101m U.K. residential portfolio

Home REIT has acquired 199 additional properties located across England for an aggregate purchase price of €101 million ($102.8 million).

The properties have added 869 beds for those in need to the portfolio, bringing the total to 10,421 while enhancing the company’s geographic diversification. They have 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 (CICs), providing them long-term security of tenure. The leases are subject to annual upward-only rent reviews, index-linked to the Consumer Prices Index, with an annual collar of 1 percent and cap of 4 percent. Each of the properties is immediately income producing, and after these transactions, the blended net initial yield of the company’s portfolio is ahead of expectations.

Charlotte Fletcher, partner at Alvarium Home REIT Advisors Limited, said, “This