Home REIT
 | |
| Company type | Public limited company |
|---|---|
| LSE: HOME | |
| Industry | Property |
| Founded | 2020 |
| Headquarters | London, United Kingdom |
Key people |
|
| Revenue | £11.8 million (2021)[1] |
| £22.5 million (2021)[1] | |
| £20.9 million (2021)[1] | |
| Website | www |
Home REIT is a property company which invests in the provision of sheltered housing for homeless people throughout the United Kingdom. The company is listed on the London Stock Exchange.
History
[edit]Home REIT was launched on the London Stock Exchange in October 2020 raising £240 million in what turned out to be the largest initial public offering of any investment trust in the year.[2] It used the proceeds to invest in some 500 properties for homeless people around the United Kingdom.[3]
The company went on to raise a further £350 million in September 2021, and used the proceeds to buy another 366 properties.[4] After that, it raised another £150 million in May 2022,[5][6][7] and used the proceeds to acquire another 216 properties, so diversifying its portfolio of sheltered accommodation for homeless people such that, by then, the properties were let to 28 charities or housing associations in 126 local authority areas.[8]
On 7 December 2022, a group of shareholders claimed the company had misled the market by investing in properties occupied by tenants who are not vulnerable and therefore would not qualify for Housing Benefit payments.[9][10] The company denied the allegations.[11] It admitted on 15 December 2022 that it had no record of how much of its income comes from Housing Benefit payments, on which it is significantly dependent.[12]
Operations
[edit]The company specialises in property for homeless people in the United Kingdom. It is managed by AEW UK Investment Management LLP and lets the properties to registered charities and housing associations on leases of between 20 and 30 years.[13] Its portfolio was valued at £327.9 million as at 31 August 2021[1] and, by May 2022, it had created a portfolio offering 8,500 beds in sheltered accommodation for homeless people.[14]
Controversy
[edit]In 2024, the Serious Fraud Office opened an investigation into the company over whether fund managers misled the market.[15]
References
[edit]- ^ a b c d "Annual Report 2021" (PDF). Home REIT. Retrieved 21 July 2022.
- ^ "IPO of Home REIT plc". BDO. Retrieved 21 July 2022.
- ^ "Home REIT fully deploys £240m IPO proceeds". IPE Real Estate. 3 June 2021. Retrieved 21 July 2022.
- ^ "Home REIT acquires 366 UK properties in £166m deal". IPE Real Estate. 18 October 2021. Retrieved 21 July 2022.
- ^ "UK-listed Home REIT plans £150m fundraise". IPE Real Assets. 16 May 2022. Retrieved 21 July 2022.
- ^ "Home REIT launches £150m fundraise for homelessness accommodation". 19 May 2022. Retrieved 21 July 2022.
- ^ "Home REIT and Gresham House Energy Storage raise funds in oversubscribed placings". Investment Week. 27 May 2022. Retrieved 21 July 2022.
- ^ "UK-listed Home REIT invests £92m to buy 216 properties". IPE Real Assets. Retrieved 21 July 2022.
- ^ "Group action launched against Home REIT". EGI Radius. 7 December 2022. Retrieved 16 December 2022.
- ^ "Home REIT faces claims by investors over 'misleading' social impact strategy". Investment Week. 7 December 2022. Retrieved 16 December 2022.
- ^ "Home REIT board denies allegations of misleading shareholders". Investment Week. 12 December 2022. Retrieved 16 December 2022.
- ^ "Home REIT: We've no idea where our rent comes from". City AM. 15 December 2022. Retrieved 16 December 2022.
- ^ "Real estate investment trust Home REIT raises £240m through IPO to fund accommodation for homeless". City AM. 8 October 2020. Retrieved 21 July 2022.
- ^ "Home REIT raises £263m to tackle homeless crisis". Quoted Data. 27 May 2022. Retrieved 21 July 2022.
- ^ "Home REIT: Serious Fraud Office probing whether fund managers misled the market". City AM. 20 March 2024. Retrieved 22 March 2024.