Mansit Housing CIC has become the latest non-performing Home Reit tenant to surrender the leases on the properties it rents from the trust.
The 68 properties make up 4% of Home Reit’s portfolio.
The Assured Shorthold Tenancies on the majority of the properties will be transferred back to the trust, enabling the firm to directly manage the assets.
In a stock exchange announcement this morning (14 August), the Home Reit board said it would appoint property managers to the surrendered properties, who will be responsible for rent collection and day-to-day management.
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Last week (8 August), One (Housing & Support) CIC entered into administration. The firm was a tenant of 110 properties, amounting to 7% of Home Reit’s portfolio.
Home Reit, which has been engulfed by 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.
The trust is currently under investigation by the FCA and faces a claim from Harcus Parker on behalf of shareholders amid accusations from shareholders over a lack of adherence to its investment policy.
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.
