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Home REIT PLC on Friday said it has exchanged contracts to sell 40 properties for £4.8 million. In May, the troubled property investor focused on accommodation for homeless people agreed for AEW UK Investment Management LLP to become its property adviser. At the time, Home REIT said AEW will prioritise undertaking a ‘thorough’ review of its assets, in order to create a longer-term strategy for its portfolio. AEW also said it will take on the preparation for a potential sale of some properties, and engaging with tenants over issues with their properties, as well as other short-term requirements. The former FTSE 250-listing has been rocked by scandals over recent months, including tenants withholding rent or going bust, allegations of misleading shareholders, and finding itself in the cross-hairs of a short-seller last November. In line with its review, Home REIT said it has sold 40 properties representing 1.6% of the company’s portfolio by number. ‘The sale properties were identified as having limited prospects for income and capital return given the required capital expenditure in order to be brought up to specification,’ Home REIT explained. It added that the proceeds from the sale represent an average of 39% of their purchase price, reflecting the vacant status of the majority of the properties and their condition. Completion of the sale is expected in about one month’s time. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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