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Home REIT and charity client agree to property surrender
Under-pressure investment trust Home REIT has agreed to surrender the properties of another charity clients as it struggles to cope with debts and tackling ongoing legal challenges.
Home REIT, which is in the process of winding down, said in a stock market update on 24 December 2024 that Southport-based LTG Vision’s 171 properties would be surrendered.
Lomond Investment Management will act as property manager for the assets going forward.
As at 30 September 2024, LTG Vision represented 15.7% of Home REIT’s portfolio.
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Home REIT, which specialises in accommodation for people experiencing homelessness, also announced it had fully repaid its loans from Scottish Widows, along with a further £9m in additional fees.
The organisation said it expects its accounts for the year ending 31 August 2023 to be released in January 2025, with the following year’s results due in the first quarter of 2025.
The London-based firm has been beset by problems in recent years and has been selling off properties in an attempt to try and pay off its debts. By October, it had raised £216.9m.
It posted a pre-tax loss of £475m in its delayed financial accounts for the financial year ending on 31 August 2022, which it published in October 2024.
The organisation has struggled to collect rents from some of its tenants, with multiple charity clients entering voluntary liquidation in recent months.
Home REIT is being sued by some of its own shareholders, while the firm itself is taking legal action against Alvarium, its former investment advisor.
The Financial Conduct Authority also launched an investigation into the investment trust in February 2024.
Southey Capital emerged as a potential buyer for Home REIT in December, valuing the firm at £32m.
Home REIT, which floated on the London Stock Exchange in 2020, has been rocked by multiple problems in the past two years, ever since short-seller Viceroy Research published a report raising doubts about its business model in 2022.
Among the issues raised was whether Home REIT’s clients would be able to service their leases on a long-term basis.
