REIT sells off £15 temporary accommodation block as part of wind-down strategy

The REIT confirmed that a key part of this strategy is to “ensure residents are protected”.

A spokesperson for Luton Council said: “We are aware of the sale and are endeavouring to work with the new provider to explore what arrangements the council may be able to secure directly.

“Clearly if residents were displaced, we would as a matter of priority, and as early as we could, support the residents of Wesley House with their housing needs.”

The sale was marginally in excess of the £14.8m valuation, which will enable ReSI to repay in full its £15m floating rate debt with Santander.

The wind-down strategy aims to position the firm so it is concentrated exclusively in the independent retirement rentals and shared ownership residential sub-sectors.

ReSI is the second listed REIT to announce plans for a wind-down, as Home REIT is also going through a similar plan.

Rob Whiteman, chair of ReSI, said: “The headwinds for smaller listed real estate businesses have been well flagged, and there are no quick fixes.

“Having explored a range of options with our advisors, the board has decided that the best course of action is a proactive, managed wind-down and portfolio realisation strategy over an appropriate time period.”

As part of the wind-down, ReSI is also selling subsidiary ReSI Housing.

Inside Housing understands that ReSI will aim to sell the for-profit provider’s homes as a package rather than individual properties.

London-based ReSI Housing has been registered as a for-profit provider with the Regulator of Social Housing since July 2018.

In November last year, the provider reported an annual pre-tax loss of £15.7m despite an increase in revenue.