Scandal-hit homeless landlord Home REIT appeared to be nearing its end yesterday after the group announced a deal to sell most of its properties to a European firm.
The company, which is scrambling to reduce its debt pile, said it had struck an agreement with Patron Capital to offload 700 of its 853 properties for £123million. The rest, following the sale, will be worth £18.3million.
Home REIT, an investment trust specialising in housing vulnerable people, is selling its properties to repay debts, a large portion of which is owed to pensions and insurance firm Scottish Widows.
Following its stock market listing in 2020, the firm spent hundreds of millions buying properties to rent to housing associations and charities.
But short seller Viceroy Research questioned its ability to collect rent and by 2023, several of its biggest tenants were refusing to pay rent, and the shares were suspended from trading.
Three sets of financial results are now late and Britain’s accounting watchdog is probing auditor BDO over its scrutiny of the 2021 accounts.
Sell-off: Home REIT, which is scrambling to reduce its debt pile, said it had struck an agreement with Patron Capital to offload 700 of the 853 properties on its books for £123m
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