Home REIT Plc loses two major tenants

Last week, Home REIT Plc, a UK-based housing provider, announced that two of its tenants, Gen Liv UK CIC and Lotus Sanctuary CIC, have decided to go into creditors’ voluntary liquidation. This news adds to the company’s concerns as it is already dealing with a short-seller attack and is also reviewing a potential sale. Home REIT stated that it is in discussions with new tenants to lease the two portfolios previously occupied by Gen Liv UK CIC and Lotus Sanctuary CIC, both of which provided housing for the homeless.

Last month, Home REIT announced that it had received an unsolicited takeover proposal from Bluestar Group Ltd, an investment company focused on real estate-backed businesses across Europe. The proposal, if accepted, is expected to be in cash. Bluestar has until March 16 to either make a formal offer or decide not to proceed.

Home REIT is also dealing with a scathing report from Viceroy, which gained recognition for its warnings about Germany’s Wirecard. In November, Viceroy raised concerns about the valuation levels of Home REIT’s assets and questioned whether Gen Liv, one of its tenants, could pay its lease obligations. Viceroy also criticized the services offered by Lotus, a housing provider for women, citing a submission from the Women’s Aid Federation of England.

In January, Home REIT reported that its largest tenant, Big Help Group, along with Noble Tree Foundation, had failed to pay rent for the quarter ending Nov. 30, and the company was exploring ways to obtain payment.According to Home REIT, Lotus Sanctuary CIC represented 12.5% of the company’s yearly rental income, while Gen Liv UK CIC represented 5.7%.

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Home REIT Plc loses two major tenants

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