Home REIT has sold 40 properties as new property adviser AEW attempts to steady the business.
The sale, at public auction yesterday, disposed of 1.6% of the REIT’s portfolio and pulled in £4.85m.
Completion is expected in one month. The proceeds from the properties represented an average of 39.4% of their purchase price, reflecting the vacant status of the majority of the properties and their condition. Proceeds will be used to reduce borrowings and provide working capital.
Subject to approval by shareholders this month of the company’s new investment policy, Home REIT and AEW plan to undertake a programme of re-tenanting and rationalisation.
However, the efforts to stabilise the company’s financial position will be at the expense of its focus on homelessness.
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