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Investment trust flotation aims to raise £250m for housing homeless

An investment firm plans to raise some £250m by floating a real estate investment trust, with the funds used to house homeless people.

Alvarium Investments is behind Home REIT, which will buy or develop accommodation for homeless people, and which is supported by the homelessness charity Crisis.

The cash would be raised by a London Stock Exchange flotation.

Home REIT will buy or build property to let on 20 to 30-year leases to charities and social landlords that provide low-cost accommodation to the homeless. 

It hopes to achieve a minimum 7.5% annual return for investors over the medium term.

Home REIT chair Lynne Fennah said: “We believe a significant investment opportunity now exists in the UK homeless accommodation asset market and the Alvarium team has already identified a substantial pipeline of homeless accommodation assets that we, and the Alvarium team, consider are at low and sustainable rent levels.”

Ms Fennah said Alvarium specialist expertise would be used to deliver a positive social impact and inflation-protected income and capital returns to shareholders.

REITs are companies that own property enabling investors to gain returns from these without having to directly engage in property management as landlords.

Mark Smulian

 

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