Another Home REIT tenant surrenders leases on 68 properties

It comes a week after One (Housing & Support) CIC, a tenant of 110 properties in Home REIT’s portfolio, agreed to enter into administration after being deemed “non-performing”.

Home REIT said the majority of the properties were occupied by private rented sector tenants on assured shorthold tenancies (ASTs). 

In a stock exchange notice, it said: “These ASTs will now transfer to Home REIT, enabling the company to directly collect the underlying income from these properties, increasing rent collection and facilitating asset management opportunities.

“The company will be appointing property managers to the surrendered properties, who will be responsible for the day-to-day management and rent collection.”

Last month, Home REIT announced it was set to be wound down amid significant debts, the threat of legal action and a probe by the financial regulator.

The listed firm, which specialises in accommodation for people experiencing homelessness, said a “managed wind-down strategy” would be in the “best interests” of shareholders.

Home REIT said a review of its “stabilisation strategy” had concluded it faced “considerable challenges”.

Earlier this year, Noble Tree became the sixth client of Home REIT to go bust, as the firm struggles to collect rent.

Supportive Homes CIC, a tenant of 209 properties in the company’s portfolio, entered voluntary liquidation in September last year.

In March this year, Home REIT said it had sold off 63 properties, which will bring in proceeds of £6.1m.

Home REIT has been selling homes by the hundreds since August 2023, as part of a plan to bring its debt under control.

The Financial Conduct Authority launched an investigation into Home REIT in February.

The firm had earlier revealed it had been unable to secure refinancing of its existing debts on terms that it could recommend to shareholders.

Trading in Home REIT’s shares was suspended in January 2023, after it missed a deadline to publish its annual report.