Harcus Parker, the law firm seeking compensation on behalf of Home Reit shareholders, has called on the trust to explain links between potential bidder Bluestar and its fund manager Alvarium.
It comes in the wake of Home Reit’s annual general meeting which took place yesterday. As planned, no proposals were put forward with the meeting instead being used as an opportunity to engage with shareholders.
Jennifer Morrissey, partner at Harcus Parker, said: “We remain disappointed with the lack of engagement with shareholders that Home Reit continues to demonstrate.
“Shareholders have suffered substantial losses and are yet to see the publication of the financial results, which are long overdue, as well as the outcome of the independent investigation regarding the alleged wrongdoing. No clear indication has been given of when these are going to be made public. At the same time, we learn that the board is considering the sale of the company to Bluestar at a time when these challenges stand entirely unresolved.
“With the payment of quarterly dividend suspended for the foreseeable future, no certainty around if and when trading in the company’s shares will resume, and media reports about the connections between individuals associated with Bluestar and Alvarium, shareholders have every right to be concerned.”
“We call on the company to give a comprehensive and transparent update to address the allegations raised against it and the nature of the engagement between Bluestar and Alvarium without further delay. We encourage shareholders to join our claim so they could seek compensation for the losses they have suffered.”
Last week, it was revealed that Bluestar had made an unsolicited takeover approach. Its founder, Ben Gotlieb, is a former employee of Alvarium, who also own 40% of Bluestar subsidiary Bluestar Advisors. In response, Bluestar said the arrangement is in the process of being dissolved.
Alvarium was previously Home Reit’s investment adviser. On 4 January, the firm sold the adviser to its existing management.
The embattled trust has faced a raft of allegations in recent months amid concerns over its viability and investment process.
The trust’s shares have been suspended since the beginning of January after it failed to publish its full year results to the end of August 2022, which came as a result of enhanced auditing procedures carried out in response to the compensation claim from Harcus Parker and Viceroy Research’s accusations regarding the trust’s viability.
Earlier in February, Home Reit revealed that 77% of rent due in the three months to 30 November had not been collected, while at least 25% of its portfolio required renovation.
See also: Home Reit put on notice by FTSE Russell
