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Fifth charity client of under-fire homelessness investment fund goes bust
Five clients at under-fire homelessness investment trust Home REIT have now gone bust since March.
The trust has told the stock market that Supportive Homes CIC, a tenant of 209 properties in the company’s portfolio, has entered voluntary liquidation.
The client represents 11.3% of the rent demanded by Home REIT in August 2023.
Home REIT said: “The tenant is non-performing and the creditor’s voluntary liquidation unlocks the ability for the company to re-tenant properties or carry out other asset management initiatives as soon as possible.
“Furthermore, discussions with other prospective tenants to take on new leases on the properties have already commenced.”
The trust said it is also working with the liquidator to ensure a smooth handover focused on minimising any potential disruption to underlying occupants and support services in place.
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The private fund leases more than 10,000 beds across 135 local authorities for charities to provide accommodation to homeless residents and is listed on the London Stock Exchange.
It is the fifth client of Home REIT to go bust since March, as the beleaguered firm struggles to collect rent.
The firm’s last monthly update in August revealed that its property advisor is engaging with the liquidators of Redemption Project CIC and Serenity Support CIC “to re-tenant and carry out other asset management initiatives”.
Both Serenity and the Redemption Project filed for voluntary liquidation at the start of last month.
Four charity clients of the fund have now gone bust in the space of six months. The fund made a similar announcement about two other clients in March.
Just last week, Home REIT revealed that another client had agreed to surrender the leases on 100 properties, made up of 418 beds.
At the time, the firm said the surrender agreement would allow it “to receive a sustainable income stream from a strong tenant covenant and is expected to generate significantly higher rent collection than has previously been received from One CIC”.
Mears Limited, the housing and social care provider that is guaranteed by the Mears Group, has been occupying the properties on a sub-lease from One CIC.
In addition, Home REIT’s board “has initiated a formal and phased succession process” and JLL is conducting a fresh valuation of its portfolio, following a recent sell-off and a number of clients going bust.
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