The “unsolicited approach” for Home REIT may not have been quite as unexpected as the beleaguered “homes for the homeless” investor has suggested.
Yesterday the FTSE 250 REIT, which has raised more than £850m from investors in just over two years to build a 2,500-plus property portfolio, confirmed that it had “received an unsolicited approach from Bluestar Group Limited regarding a possible offer for the entire issued share capital of the company”.
“Any offer by Bluestar would likely be in cash,” it said, adding that it was “considering all strategic options, including the possible sale of the company”.
Home REIT, which has had its shares suspended at 38p since the beginning of the year after delaying its annual report, admitted that it had collected just 23% of rents due last quarter. With a portfolio valued at nearly £1bn and a current market cap of just over £300m, it is ripe for an approach.
But who, or what, is Bluestar?
The short answer, given by Home REIT, is “an investment firm focused on pan-European real estate-backed businesses”.
But a deeper look reveals some close links between Home REIT and its would-be buyer.
Home was founded in 2020 by Alvarium, the $7bn AUM “global multi-family office, co-investment partner and merchant banking boutique”.
Since the publication of a damning dossier by short-seller Viceroy Research in November, Alvarium, which has recently floated on Nasdaq, appears to have severed all ties with Home. First it handed Home’s investment adviser, Alvarium Home REIT Advisers, a promissory note to perform a £24m management buyout. Last month it quit as Home’s securities adviser.
But it appears it has considerable links to Bluestar.
There are a number of Bluestars listed at Companies House – and even more if you look outside the UK. But the one making a play for Home describes itself as “a special situations investment company set up to acquire and lend capital to pan European real estate-backed businesses and development schemes”.
It was founded and owned by Benoit Gotlieb in 2019 and in that time has filed accounts just once, for “a dormant company” 2021, posting cash of £1 and debt of £169,497.
But it is what Gotlieb did before founding Bluestar and its associated companies that is interesting. He was vice president of acquisitions at Queensgate Investments, overseeing the acquisitions, financings and operational turnarounds of Grange Hotels, Generator Hostels, London Executive Offices and Kensington Forum.
And before that he worked at Alvarium Investments.
There, according to his LinkedIn profile, he specialised in “various real estate sectors including hotels, student accommodation and residential development”.
Gotlieb is also a director and majority owner of Bluestar Advisors. The other 40% is owned by Alvarium Re. Its other director is Jonathan Elkington, who is Alvarium’s head of private real estate.
As well as a partner, Elkington is described by Alvarium as being “responsible for co-ordinating and overseeing Alvarium’s real estate platform and sits on boards and investment committees of a number of Alvarium’s joint venture partners”.
And, according to papers filed at Companies House, Elkington was a director of Alvarium Home REIT Advisers. Until 6 February 2023.
Home REIT is due to hold an AGM next Monday, as it is obliged to by London Stock Exchange rules. It has said no business will be discussed, although investors will be invited.
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