The Financial Conduct Authority (FCA) has formally closed its investigation into troubled real estate investment company Home REIT.
Michael O’Donnell, chair of Home REIT, said:“Following our extensive cooperation with the FCA’s investigation, we are pleased to announce that it has closed its investigation and intends to take no further action against the company.”
This brings an end to an investigation that began more than two years ago as the REIT became involved in a series of major scandals.
Established in 2020, the company claimed to target inflation-protected income and capital returns through the creation of homeless accommodation. It targeted long leases to registered charities, housing associations and other regulated organisations.
However, the trust soon found itself at the heart of several scandals. Starting in 2022, an overvaluation scandal dominated headlines as investors found its properties were worth less than half of what had been paid for them.
In 2023, shareholders accused it of investing in assets inconsistent with its investment philosophy while delivering poor returns, and former investment adviser Alvarium were found to have provided incorrect ESG information.
Coupled with further allegations of inability to collect rents, poor property conditions and an external audit that wiped roughly £564m of value from the portfolio, the trust entered a managed wind-down in 2024. After its extremely delayed 2023 results, the trust’s board stepped down in 2025.
The troubled investment company sold the final four properties in the portfolio earlier this year.
See also: Home REIT completes sale of final four properties
Parallel to the FCA’s work, the Serious Fraud Office (SFO) made six arrests and seven searches as part of its own investigation into the company’s operations.
At the time, SFO director of operations, Emma Luxton, said: “This company had a meteoric rise, spending millions on properties that were supposed to house the most vulnerable in society and provide returns for investors.
“Its chaotic downfall has left many with unanswered questions.”
That said, it’s not the end of troubles for Home REIT. In October this year, law firm Harcus Parker, representing around 800 current and former Home REIT shareholders, issued high court proceedings against the trust, accusing it of making fraudulent statements.
David Batchelor, senior analyst at QuotedData, said: “HOME’s brief response offers no substantive defence to Harcus Parker’s case of alleged misrepresentations about the security of rental income, tenant quality and the social purpose of the portfolio.
“Shareholders deserve accountability, but with HOME among the defendants, any compensation funded from asset sales reduces the pot available for eventual distribution.”
