Home REIT has exchanged on the sale of a further 153 properties representing 6.5% of its portfolio.
The sales were made in a series of public auctions held between 7 and 8 November.
The total amount raised was £24.3m. This figure represents a 65% loss in value versus the aggregate purchase price. Completion of the sales is expected in approximately one month.
The properties sold were described as being in poor condition, largely vacant and requiring significant capital expenditure to be brought up to specification.
Of the properties sold, 73 are subject to leases with tenants in liquidation which will be surrendered prior to completion.
The sell-off is part of investment manager AEW’s strategy to stabilise the portfolio by reducing debt and securing working capital.
The update follows Monday’s announcement that the REIT had sold 14 properties for £8.98m, also via auction.
The REIT has been struggling with non-payment of rent across a large proportion of its portfolio over recent months, which has caused its debts to spiral and created the need for a series of asset sales.
Collection rates from tenants have been as low as 7% of the amount due.