17th Jun 2024 11:23
(Alliance News) - Home REIT PLC on Monday said it will seek alternative funding sources after it failed to secure a refinancing of an existing loan.
The London-based real estate company, which invests in social housing across the UK, began selling properties in August in order to manage debt.
In February a refinancing process was launched to consider the options available as part of its stabilisation strategy, with AEW UK Investment Management LLP and AEW UK Investment Management LLP conducting the review on behalf of Home REIT.
Following this, the board concluded that Home REIT will be unable to secure the refinancing, on acceptable terms, of an existing facility with lender and Lloyds Banking Group PLC subsidiary Scottish Widows Ltd.
Non-Executive Chair Michael O'Donnell said: "As a refinancing has not been possible, the board is considering a number of options both to repay the outstanding debt and provide an optimised resolution for shareholders, which may include a more extensive realisation strategy."
At May 31 total borrowing stood at GBP131.8 million, which will reduce to GBP104.8 million after the sale of properties worth GBP27 is complete.
The company's current portfolio consists of 1,765 properties valued at GBP314.1 million, with Home REIT assuming direct control of 1,193 properties as part of the stabilisation strategy.
Home REIT shares have been suspended since January 2023, after the company failed to publish its annual report.
By Elijah Dale, Alliance News reporter
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