Home REIT rental woes continue as tenants enter voluntary liquidation

March 6, 2023

(Alliance News) - Home REIT PLC on Monday said that two of its tenants, Gen Liv UK CIC and Lotus Sanctuary CIC, have entered creditors' voluntary liquidation.

Collectively, the tenants represent around 18% of the company's annual rent roll. The former has appointed FRP Advisory Trading Ltd as liquidators.

The London-based real estate investment trust told investors that it was in discussions with prospective tenants to take on the leases, adding that no resident would lose their accommodation because of the liquidation.

Discounting Lotus and Gen Liv, Home REIT has already seen a deterioration in its rent collection position over the last couple of months.

On January 12, the company told investors that both Big Help Group and Noble Tree Foundation had disputed their rental obligations, and failed to pay for the three months to November 30.

Previously, it attributed this deterioration to a report by Viceroy Research in November, which accused executives of short-selling. The law firm Harcus Parker was subsequently appointed to establish whether Home REIT had misled shareholders, including in relation to its social impact.

In February, Bluestar Group Ltd confirmed an "indicative proposal" to acquire the investment trust, but didn't specify financial details. The London-based investment company has until March 16 to make a firm offer.

Home REIT's shares are currently suspended from trading in London, after it failed to published its annual financial report for the year 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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