One (Housing & Support) CIC, a tenant of 110 properties amounting to 7% of Home Reit’s portfolio, has entered into administration.
The non-performing tenant is using Evelyn Partners as its administrator. They have appointed Myshon Capital, a supported and affordable housing specialist, to manage the handover of the properties. This will include overseeing the collection of rent and minimising any potential disruption for the occupants of the housing.
According to Home Reit’s board, the trust and its investment manager AEW will be “working closely with the administrator and Myshon Limited to arrange for the leases to be surrendered to Home Reit and re-let once the handover has completed”.
See also: AEW Europe CEO Wilkinson: Why we took on beleaguered Home Reit
One (Housing & Support) CIC’s liquidation comes less than two months after Noble Tree Foundation – a tenant of 143 of the trust’s properties, making up 7% of its rent roll – also entered into administration.
Home Reit, which is saddled with debt and has been mired in scandal over the last year, has been vocal about taking legal action against its non-paying tenants recently, with the trust warning investors that rent collection will vary “month on month” as it aims to overhaul its portfolio littered with non-performing tenants.
As the Reit has continued to sell off properties in order to pay back debt, its board has proposed a wind-down, with the trust potentially becoming too small for some investors once its £114.6m debt has been paid off.
