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Home REIT sells further 137 properties for GBP22.8 million

29th Sep 2023 09:39

(Alliance News) - Home REIT PLC on Wednesday said it exchanged on the sale of 137 properties worth GBP22.8 million.

The London-based real estate firm, which invests in housing for homeless people, said the sale represented 5.6% of the company's portfolio by number of properties, with completion expected within one month.

Home REIT said AEW, investment manager of the company, identified a portfolio of properties that were in "poor condition, largely vacant and requiring significant capital expenditure in order to be brought up to specification".

Of the properties exchanged for sale, Home REIT said 100 properties were subject to leases with tenants in liquidation which will be surrendered prior to completion.

Home REIT said proceeds from the properties sold represented an average of 32% of their purchase price.

Sale proceeds will be used to reduce borrowings and provide working capital as part of AEW's strategy to stabilise the property portfolio, Home REIT said.

Home REIT shares were suspended in early January after it failed to published its annual report for the financial year that ended August 31, 2022.

Home REIT said in early September that it did not expect to be in a position to publish outstanding accounts until late 2023 at the earliest.

On Friday last week, Home REIT said that Redemption Project CIC agreed to surrender its leases on 146 properties, equating to around 6% of Home REIT's portfolio by number of properties.

Home REIT said Redemption's decision follows entering into creditors voluntary liquidation at the start of August, alongside another Home REIT tenant Serenity Support CIC.

Redemption has not paid rent to Home REIT in 2023, Home REIT noted.

Home REIT said two transactions have "completely" removed its exposure to Redemption, which accounted for 11% of annual contracted rent at August 31.

By Greg Rosenvinge, Alliance News reporter

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