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Two charity clients of homelessness investment fund enter voluntary liquidation
Two charity clients of a listed homelessness accommodation investment fund have entered voluntary liquidation.
Home REIT, a private fund that leases more than 10,000 beds across 135 local authorities for charities to provide accommodation to homeless residents, told the stock market this morning that two of its clients have gone into voluntary liquidation.
Gen Liv UK CIC, a tenant making up 5.7% of Home REIT’s annual rent roll, has entered into a creditors’ voluntary liquidation and has appointed FRP Advisory Trading Limited as liquidators.
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In addition, Lotus Sanctuary CIC, a tenant making up 12.5% of the firm’s annual rent roll, also entered into a creditors’ voluntary liquidation on 2 March.
Home REIT said it was in discussions with prospective tenants to take on new leases of both portfolios.
The trading update states: “It should be noted that whilst discussions with prospective tenants are ongoing, arrangements have been made for existing care and support services to continue, to ensure that there is no impact on underlying residents.
“No resident will lose their accommodation as a result of the above creditors’ voluntary liquidations.”
Both charities have been contacted for comment.
The news follows a report from Inside Housing last month that revealed how Liverpool-based Big Help Group had not paid rent “contractually due” to Home REIT for the quarter to 30 November 2022.
At the time, the real estate investment trust said: “The company is reviewing all options to obtain payment of overdue rent from its tenants.”
However, the charity claimed that the rent was not owed, as it was required to invest its own resources to bring the properties it leased up to standard, and had agreed rent waivers from the fund to claim back this cost.
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