UK residential property firm Home REIT said on Friday that it has raised gross proceeds of £263 mln (€311 mln) through a significantly oversubscribed placing of 229 million new shares at an issue price of 115 pence per piece.
Given the strong level and quality of demand from investors in the capital raise, the company’s board decided to increase the size of the issue from the initial target of £150 mln to £263 mln.
Notwithstanding this increase, the company said that investor demand exceeded the maximum size of the subsequent placing and a scaling back exercise was undertaken.
‘There is an ongoing critical need for homeless accommodation in the UK due to an increasing homeless population and a lack of available and affordable, high-quality, fit-for-purpose homes to address this societal issue,’ the company said in a statement.
Home REIT aims to deploy the net proceeds of the Placing into the company’s £300 mln acquisition pipeline, representing hundreds of new homes.
Lynne Fennah, Chairman of Home REIT, commented: ‘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. 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.’