Scottish Widows has increased Home Reit’s loan fee by two percentage points to 7%, following the trust’s failure to secure refinancing of its existing debt facility.
The additional fee will be in place until the loan is fully repaid. According to Home Reit, Scottish Widows expects full repayment by the end of 2024.
In its latest monthly update, the Home Reit board announced the repayment of £17.1m to bring total borrowings down to £114.6m.
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The trust had previously announced its investment manager, AEW UK, would seek to repay its outstanding borrowings in a timely manner by prioritising further property sales in the short term.
In total, 88 property sales completed in June for a total of £15m. The trust also recorded total income of £600,000 in the month, marking a 60% increase from May.
AEW UK has now re-gained control of 70% of the Home Reit portfolio through removing non-performing tenants.
Meanwhile, its outstanding results for the 2022 financial year are expected to be published in August.
