Home REIT has sold a further 137 properties at a two-thirds loss.
The sales, by public auction over the past eight days, disposed of 5.6% of the REIT’s portfolio, raising £22.8m. Completion is expected in approximately one month.
The majority of the assets by value were included in an auction which took place on 28 September.
AEW, the REIT’s new investment manager, had 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, 100 were subject to leases with tenants in liquidation, which will be surrendered prior to completion.
The REIT confirmed that the sale price for the properties represented an average of 32% of their purchase price.
Home REIT has been criticised in the past for overpaying for properties.
The sale proceeds will be used to reduce borrowings and provide working capital as part of AEW’s strategy to stabilise the property portfolio.
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