London-based family office and asset manager successfully launches new vehicle to tackle UK homelessness

Ian Orton, 16/11/2020

Impact investing can sometimes seem incongruous given the imperative of generating a measurable beneficial social or environmental impact alongside a financial return.

Proving housing for the homeless and vulnerable is very admirable. Receiving a dividend yield of 5.5 percent and an annual total return of 7.5 percent for the privilege may not be considered quite so meritorious.

But this is what Home Reit plc., a close-ended vehicle advised and managed by Alvarium Fund Managers, a subsidiary of Alarium Investments, the London-based family office and asset manager that includes Nancy Curtain, the former chief investment officer of Close Brothers Asset Management (CBAM), as well as Stuart Davies and Marcus Porter within its rank, intends to do.

Furthermore, Home has just raised £240 million from investors as well as securing a listing on the London Stock Exchange (LSE) at a time when new listed investment vehicles are relatively scarce.

If nothing else this would suggest that this form of impact investing has struck a chord.

Home intends to “to deliver protected income and capital growth over the medium term for shareholders through funding the acquisition of high quality homeless accommodation across the UK let on key long term index-linked leases,” it says on its website.

“The company will be dedicated to tackling homelessness in the UK and will target a wide range of sub-sectors within homelessness including, but not limited to women fleeing domestic violence, people leaving prison, individuals suffering from mental health or drug related and alcohol issues and foster care leavers,” Home continues.

Home should certainly meet a social need. According to Shelter, a UK hou...

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