Home REIT has sold another 200 of its properties as the board prepares to potentially wind-down the beleaguered trust.
It first proposed the closure in July when it was unable to re-finance the £114.6m of debt on its books, which it had already reduced from £220m. Earlier this month, shareholders voted almost unanimously in favor of selling the trust’s assets to pay off the remaining debt and optimize value if the trust is eventually wound down.
Proceeds from these latest sales total £36.9m, representing 15% of the trust’s overall portfolio by value. Since August last year, Home REIT has sold 1,208 properties and exchanged on a further 293, bringing in £216.9m in total.
Not all properties in the most recent batch of sales sold for the price Home REIT had been hoping, but a statement from the trust this morning (30 September) said it was a step in the right direction.
“Whilst positive and negative variations between the sales price at auction and draft valuations are to be anticipated the board remain encouraged that in aggregate the auction results continue to be in line with the draft valuations with strong results for the company’s higher value properties, particularly in London where results have been strong, and sales prices have exceeded draft valuations,” it said.
Home REIT had a strong start when it initially entered the market as one of the largest investment trust initial public offerings of 2020, raising £240m.
But uncertainty over the trust’s future came to light in 2023 following a series of issues over the 18 months, including the collapse of its rent roll, delayed annual results leading to de-listing from FTSE indexes, and accusations from shareholders over a lack of adherence to its investment policy.
