Home REIT and investment manager AEW UK Investment Management say they are close to taking the “next step forward” in terms of turning around the struggling company set up to invest in accommodation for the homeless.
Last month, the company sold 119 properties at auction for a total of £5.7m, 15.5% below August valuations. Since entering a stabilisation period last August, Home REIT and AEW have sold 394 properties for £74.6m, reduced bank debt from to £149.1m from £220m to £149.1m and initiated a refinancing that they say “is progressing well”.
Lease surrenders have been agreed at 315 properties and 77% of the property portfolio has been subject to internal inspection. A new investment strategy means the company is no longer focused on housing for the homeless.
“On the corporate side, updated draft valuation reports have been produced by JLL as part of the process to produce the financial results for past periods and achieve a restoration of trading of the company’s shares,” Home REIT said.
“Overall, AEW has looked to establish firm foundations from which to move forward and believes the company is able to take the next step forward in terms of implementation of the stabilisation strategy with re-tenanting. AEW has several initiatives ongoing and expects to make further positive announcements in the near future.”
Home REIT added: “The company intends to bring legal proceedings against those parties it considers are responsible for wrongdoing.” It said it would “co-operate fully” with a Financial Conduct Authority investigation.
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