Liverpool-based housing Charity Big Help Group has surrendered 600 properties, amounting to 30% of its portfolio, to beleaguered real estate investment trust Home Reit.
The lease surrenders, which completed yesterday (28 May), comprised tenants from the private rented sector, tenants on assured shorthold tenancies – which allows landlords to let out a property while retaining the right to repossess the property at the end of the tenancy – and social tenants housed by local authorities.
Home Reit will appoint ‘various property managers’ to the surrendered assets, who will be responsible for the day-to-day running of the accommodation.
See also: AEW Europe CEO Wilkinson: Why we took on beleaguered Home Reit
AEW – the trust’s investment manager – said it has “diligently analysed the portfolio and its various tenancies” to ensure there is a “comprehensive handover” with “minimal disruption to occupiers”.
Big Help comprises organisations including Big Help Homes CIC, Big Help Project Ltd, CG Community Council, Dovecot & Princess Drive Community Association, N-Trust Homes CIC and Select Social Housing CIC.
The surrender comes as part of AEW’s bid to turn around the performance of the ailing portfolio, with the trust having sold almost 300 properties this year alone.
The FCA is undergoing an investigation into Home Reit, due to ongoing issues with rent collection, delayed annual results leading to delisting from FTSER indices, and accusations from shareholders regarding a lack of adherence to its investment policy.
AEW is in the process of taking legal action against non-paying tenants, while law firm Harcus Parker is considering taking legal action against its sister fund, Home Long Income, which was launched two years before Home Reit.
