It will look to issue 250m shares at 100p each in the first issue, but has reserved the right to increase the size of the first issue to 300m. Rent paid by the housing association or charity tenant is funded through the provision of housing benefit from local or central government. The administrator, Apex Fund and Corporate Services (UK) Limited, is entitled to receive an administration fee for the provision of certain administration services to the company calculated at an annual rate of: 3 basis points of NAV up to £200m; 2 basis points of NAV above £200m and up to £500m; and 1.5 basis points of NAV in excess of £500m, subject to a minimum monthly fee of £5,000. This reflects the growing pressure on local authorities as increased demand has faced a static or falling supply of accommodation. Together, the advisory team has transacted over £1.5bn including for a social impact homeless accommodation fund and a FTSE 250-listed commercial real estate long income REIT. Well-diversified portfolio across major commercial markets i.e. The real estate investment trust that will own the building is set to be the first listing on the IPSX. Alternatively the leases may have a fixed annual growth rate. The company intends to pay dividends on a quarterly basis in cash and in the first financial period while the net issue proceeds are being deployed, the company intends to pay a minimum total dividend of 3p per ordinary share. Homeless people are estimated to be 10 times more likely to die than those of a similar age, with the average age of death for a homeless person being just 47 years old, according to Crisis. The company will review and approve each opportunity based on the following investment considerations: Home REIT will only buy in towns and cities in the UK, with a primary focus on England, where the asset has a residual value and alternative use value, such as student accommodation or residential. if there is a delay to completion of the works, this will be a risk for the developer/contractor, as they will pay the company interest/rent until practical completion occurs. SEC Form S-11 is a filing that is used to register securities issues for real estate investment trusts (REITs). The advisor has stated it will donate a proportion of its management fee to Crisis, the leading homeless charity in the UK. Real estate refers broadly to the property, land, buildings, and air rights that are above land, and the underground rights below it. Marten & Co may write on companies that use gearing in a number of forms that can increase volatility and, in some cases, to a complete loss of an investment. The leases are ‘triple net, full repairing and insuring’ in nature, meaning the tenant (in this case the housing association or charity) is obligated to pay all taxes, building insurance, other outgoings and repair and maintenance costs on the property, in addition to the rent and service charge. While some REITs have had an initial public offering (IPO) to raise as little as a few million dollars, most wait until their value reaches at least $100 million. An IPO, or Initial Public Offering, is a company's first introduction to the public market. A real estate investment trust (REIT) is a company that owns, operates, or finances income-producing properties. Poor-quality privately rented housing stock or expensive B&Bs are frequently being utilised by local authorities to manage increasing demands for accommodation. The Institute for Policy Research has estimated that a 20% reduction in reoffending could be achieved by the provision of stable housing to prison leavers. The depositary is also entitled to a one-off set-up fee. Accessed July 22, 2020. There was an eclectic mix […], IMPORTANT INFORMATION NB: Marten & Co has been paid to prepare this note on behalf of Home REIT Plc. They provide all investors the chance to own valuable real estate, present the opportunity to access dividend-based income and total returns, … It's also a good idea to check out the broker or investment advisor who recommends the REIT. Simon Property Group is a global leader in retail real estate ownership, management and development and an S&P 100 company. The administrator is also entitled to a company secretarial fee of £60,000 per annum for the provision of certain company secretarial services. Readers should not place any reliance on the information contained within this note. However, the minimum issue size … Mindspace REIT will be the second publicly traded REIT after Embassy and Blackstone raised over Rs 4,700 crore through an IPO in April 2019. Valuations of the company’s properties will be conducted twice a year. No expenses will be charged to investors by the company. "What's a REIT (Real Estate Investment Trust)?" What Is a Real Estate Investment Trust (REIT)? The costs and expenses of the issue have been fixed at 2% of the gross issue proceeds. U.S. Securities and Exchange Commission. In return, the income flows back to the unit holders (investors) as … Valuations of the company’s properties will be conducted twice a year. Business REIT abbreviation meaning defined here. The headroom between core rent and housing benefit allows the housing association to cover the management charge and the cost of running the accommodation, including the upkeep of the building. The KKREIT is a Real Estate Investment Trust (REIT) which draws rental income from 11 office properties across 7 major US cities including Seattle, Austin, Houston and Atlanta. He worked for four Cabinet ministers in four departments: the Northern Ireland Office; the Home Office; the Ministry of Housing, Communities & Local Government; and the Ministry of Justice. He was previously a partner at FTSE 250-listed long income real estate investment trust LXI REIT, where he helped launch the company in 2017. It has appointed Knight Frank LLP as its independent valuer for the purposes of establishing the fair value of the company’s property portfolio on the basis of market value in accordance with the internationally accepted RICS Appraisal and Valuation Standards. The administrator is entitled to additional fees for providing any additional services to the company which are outside the scope of the administration and company secretarial services. "Healthpeak Properties, Inc. Common Stock." The homeless accommodation assets will be let or pre-let to specialist housing associations and registered charities on long-term and index-linked leases (typically 25 years in duration). There was an 11% increase in the number of people sleeping rough or in temporary accommodation in England from Q2 2016 to Q1 2019, according to Shelter. According to Shelter, local authorities in England spent more than £1bn on housing homeless people in temporary accommodation, such as hostels, B&Bs and private rentals, in the financial year 2018/19. Simon is a long-standing member of two important committees at the Association of Investment Companies: the Statistics committee and the Property and Infrastructure Forum. Sleeping rough is the most extreme form of homelessness, but most people categorised as homeless have no permanent home, stay with relatives and friends or reside in temporary accommodation, such as bed and breakfast hotels (B&Bs), hostels, night shelters and refuges. Recent IPO After relative inactivity for the past couple of years, the REIT IPO market has experienced an uptick in activity over the past several months. Modeled after mutual funds, REITs pool the capital of numerous investors. the maximum exposure to any single contractor in connection with any forward funded developments will not be greater than 10% of gross asset value or, if not yet fully geared, gross asset value adjusted for portfolio geared at 35% loan to value. Congress established REITs in 1960 as an amendment to the Cigar Excise Tax Extension. If it's performance-based compensation, odds are they’ll be working hard to pick the right investments and choose the best strategies. By way of comparison, the private social impact fund launched by the management team has attained an ‘A’ grade by UNPRI, the highest grade available. The Office for National Statistics found that the number of homeless people dying in England increased 22% in 2018 over 2017. Gareth Jones has been active across various disciplines across UK equities and the fund management market for over 10 years after beginning his career qualifying as a chartered accountant with Ernst & Young. Mindspace REIT IPO Strengths. Several REITs focus on this sector. Accuracy of Content: Whilst Marten & Co uses reasonable efforts to obtain information from sources which we believe to be reliable and to ensure that the information in this note is up to date and accurate, we make no representation or warranty that the information contained in this note is accurate, reliable or complete. ... meaning its and investors’ goals are completely aligned. This note is for information purposes only and is not intended to encourage the reader to deal in the security or securities mentioned within it and readers should place no reliance on the information contained therein. Marten & Co does not seek to and is not permitted to provide investment advice to individual investors. REIT total return performance for the last 20 years has outperformed the S&P 500 Index, other indices, and the rate of inflation. As with all investments, REITs have their advantages and disadvantages. Through inflation-linked, long-term leases, Home REIT will have a secure growing income stream. conversions of existing buildings (defunct care homes, B&B’s, offices); refurbishments of existing, poor-quality shelters; and. He also undertook outreach shifts with sector charities while advising on homelessness and had frequent interactions with organisations such as Crisis. The local authority is funded by the Department of Work and Pensions, which covers 100% of the cost for care and housing benefit for each individual tenant housed in homeless accommodation. If investors want to consider diversifying their REIT exposure beyond Singapore to the United States, this should be a name that can be considered. 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