A Home Reit tenant accounting for 11% of the trust’s rent demands has entered liquidation.
Redemption Project CIC is a tenant of 152 properties within the trust’s portfolio. Begbies Traynor Group has been appointed as the liquidator.
Serenity Support CIC, which makes up 10 properties or 1% of the June rent roll, has also been placed into creditors’ voluntary liquidation, which will be overseen by Cornerstone Business Recovery.
See also: Home Reit saga raises doubt over the viability of investing in social housing
In a stock exchange announcement today (2 August), the trust’s board said: “Both of these tenants are non-performing, and the creditor’s voluntary liquidation unlocks the ability for the company to re-tenant the properties or to carry out other asset management initiatives as soon as possible.”
The board added it is working with the liquidators to minimise any potential disruption to occupants of the properties, while discussions with prospective tenants have “already commenced”.
“It should be noted that whilst discussions with prospective tenants are ongoing, arrangements are being made for existing care and support services for the underlying residents to continue,” the board said.
Home Reit was able to collect just 7% of the £8.8m rent it demanded in May and June.
On Friday (28 July), the trust announced an array of proposals as it attempts to move forward after months of uncertainty surrounding its future.
Among the proposed changes, the Reit is attempting to update its investment approach to no longer focus solely on social housing, but instead invest in properties for ‘any form of residential use’ as it attempts to return value to shareholders.
See also: Investigators find Home Reit adviser mishandled portfolio
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