Home Reit has announced it will look to sanction further property sales after it was unable to secure a re-financing of its current facility with lender Scottish Widows.
In a stock exchange announcement this morning (17 June), the investment trust said Scottish Widows had advised that their objective is for repayment of Home Reit’s loan balance in the short term.
Due to this, Home Reit said it would look to repay its outstanding debt primarily through further property sales.
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At the end of May, the trust had total borrowings of £131.8m, which it said would reduce by £27m once its most recent property sales have completed.
Michael O’Donnell, non-executive chair of Home Reit, said: “While the stabilisation strategy adopted in August 2023 has progressed from an operational perspective, re-financing of the debt was a key component of its continued advancement.
“As a re-financing has not been possible, the board is considering a number of options both to re-pay the outstanding debt and provide an optimised resolution for shareholders, which may include a more extensive realisation strategy.”
At the beginning of June, Home Reit tenant Noble Tree Foundation entered administration.
