Home REIT offloads 80 properties in latest scramble to clear debt
Home REIT, the beleaguered homeless accommodation fund, has sold a further 80 properties in the latest scramble to cut its debt.
In a series of updates to the London market this morning, the scandal stricken property investor said that it offloaded the homes which represented 3.6 per cent of the company’s portfolio for over £16m.
The sales took place over auction on December 19th. Some 48 properties were subject to leases with tenants in liquidation which will be surrendered prior to completion.
The proceeds from the sale properties represented an average of 33 per cent of their purchase price, Home REIT said.
Home REIT has been engulfed in a sea of troubles since last November after short seller Viceroy Research published a report which raised doubts about the firm’s business model.
In May, the firm appointed fund manager AEW as its new property adviser, who would be paid £3m a year to manage the firm.
Today, Home REIT also updated markets on JLL’s valuation of 2,473 properties, which have now been priced at £412.9m as of August 2023. This is down from £422m in February of the same year.
Lynne Fennah, chair of Home REIT, said she was “extremely disappointed” by the significant value reduction.
“The board is extremely disappointed by the significant value reduction announced today which reflects the information that has come to light regarding the quality of the Company’s assets and tenants,” she said.
“This information is in contradiction to reporting provided to the board during these periods.
She added: “The company reserves all of its rights in respect of the matters referred to in today’s announcement and is still considering the conclusions and implications of the revaluation exercise with its advisers, and what consequential actions it may take.”