Home REIT, the troubled firm that was set up to invest in properties for homeless and at-risk people, has offloaded another 117 assets.
The firm, which is currently the subject of an FCA investigation, raised £5.6m from the sales. Gross proceeds totalled just over £1m – some 15.5% below August 2023 valuations. Home REIT said the proceeds would be used to help reduce its debt and provide it with working capital.
The REIT has around £160m of debt and is collecting just 10% of its rent.
A further property is due to be put up for sale through auction today.
Home REIT was set up in 2020 and raised £850m from investors and £250m in debt to build a portfolio of more than 2,000 assets. In December 2023, JLL calculated the value of those assets to be around two-thirds lower that their £1bn-plus acquisition cost.
Several hundred assets have now been sold.
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