Noble Tree Foundation, a tenant of 143 Home Reit properties, has entered administration.
The company makes up 7% of the investment trust’s rent roll.
Home Reit and investment manager AEW said it is working with CBW Recovery LLP, the appointed administrator, to arrange a handover of Noble Tree’s tenancies. They have noted that underlying residents will not be impacted by the handover.
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“In line with the company’s investment policy to stabilise the portfolio and increase rent collection, the company will either re-let the properties to a social use provider or appoint a property manager, who will be responsible for the day-to-day management and rent collection,” Home Reit said.
Last week (29 May), Liverpool-based housing Charity Big Help Group surrendered 600 properties to Home Reit.
The surrender comes as part of AEW’s bid to turn around the performance of the ailing portfolio, with the trust having sold almost 300 properties this year alone.
The FCA is undergoing an investigation into Home Reit, due to ongoing issues with rent collection, delayed annual results leading to delisting from FTSER indices, and accusations from shareholders regarding a lack of adherence to its investment policy.
AEW is in the process of taking legal action against non-paying tenants, while law firm Harcus Parker is considering taking legal action against its sister fund, Home Long Income, which was launched two years before Home Reit.
