16th Mar 2023 14:34
(Alliance News) - Home REIT PLC on Thursday said that it has extended the deadline for Bluestar Group Ltd to make a takeover offer, as discussions continue.
The new deadline for the London-based investment company to make an offer for Home REIT is now April 13.
Bluestar first confirmed an "indicative proposal" to acquire the troubled investment trust in February, though it didn't specify financial details. The initial deadline to make a firm offer was Thursday.
The extended deadline follows recent news of a deterioration in rent collection over the past few months, spearheaded by the liquidation of Gen Liv UK CIC and Lotus Sanctuary CIC, which are two of Home REIT's tenants.
Previously, it blamed this deterioration on report in November by short-seller Viceroy Research. Viceroy said that Home REIT's response to its report all but confirmed "the round-tripping of revenues to tenants via vendor agreements, low tenant quality and related party structures between major tenants".
The law firm Harcus Parker was subsequently appointed to establish whether Home REIT had misled shareholders, including in relation to its social impact.
Home REIT's shares were suspended from trading in London, after it failed to published its annual report for the financial year that ended August 31. The suspension was recently extended a further 20 days, effective from last Thursday, "without indication of resumption".
By Holly Beveridge, Alliance News reporter
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