Home REIT shareholders have voted almost unanimously for a change in investment policy, which will allow the trust to continue to pursue a managed wind-down.
The new policy will see the trust attempt to sell its assets with the objectives of optimising remaining shareholder value and repaying the company’s loan balance.
At a general meeting held earlier today (16 September), 99.9% of shareholders voted in favour of the proposal, which was required for a wind-down to move forward.
Michael O’Donnell, chair of Home REIT, said: “I would like to thank shareholders for their overwhelming support for this proposal.
“Together with the rest of the board and AEW, we will now focus our efforts on delivering the best possible outcome for shareholders.”
The Home REIT board first announced its decision to pursue a managed wind-down in July.
The decision, which is subject to shareholder approval, came after Home Reit was unable to re-finance its £114.6m remaining debt. Home Reit’s investment manager, AEW UK, had announced it would instead look to pay down borrowings through the sale of properties within its portfolio.
The board said the expected size of the trust following the repayment of its debt may be too small for investors when considering its future as a listed Reit.
Uncertainty over the trust’s future intensified in 2023 following a series of issues, 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.
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