Beleaguered investment company Home REIT has sold the final four properties in its portfolio, amounting to proceeds of £809,777.
The real estate investment trust, which has been winding down since 2024, managed to sell 706 of its properties to Patron Capital in April this year.
Having now auctioned off its remaining 144 properties, gross proceeds of this residual portfolio came in at £16.1m – £1.2m or 7% below their valuation at the end of August last year.
Now, the boards of Home REIT’s four subsidiaries: Home Holdings 1, Home Holdings 2, Home Holdings 3 and Home Holdings 4, have approved a statement of affairs and a report to their creditors. The REIT will likely appoint liquidators of its four subsidiaries by 16 September this year.
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Home REIT was founded in 2020 to invest in accommodation for homeless and vulnerable people, leasing its buildings to charities. However, the company has been mired in scandal for significant property overvaluation, its inability to collect rent from thinly-capitalised tenants, and the poor conditions of the properties themselves.
It is currently being investigated by the Serious Fraud Office and the Financial Conduct Authority, with the former having raided and arrested six former managers early this year on suspicion of a £300m fraud and bribery scheme.
Michael O’Donnell, non-executive chair of the Home REIT, said: “Now that all property sales have been completed, we are commencing the process of liquidating subsidiaries which moves the company closer to returning any capital to shareholders.”
