Emergency shake-up at troubled Home REIT
Troubled homeless landlord Home REIT has unveiled emergency plans for an overhaul under a new investment manager.
The property firm, which has been in crisis since last year when questions were raised about its finances and business model, aims to remove its focus on housing only for the vulnerable and instead invest in all kinds of residential property.
New investment manager AEW will restructure its portfolio, with lease lengths made more flexible to ‘better align’ with the needs of residents and councils.
All change: Home REIT said the new strategy needed to be ‘urgently’ implemented
Home REIT said the new strategy needed to be ‘urgently’ implemented. It only collected 7 per cent of the nearly £8.8m of rent owed to it for the period covering May and June.
Investors vote on the proposals on August 21, with directors recommending approval.
But critics say the move goes against the firm’s original purpose.
Jennifer Morrissey, at law firm Harcus Parker, which is bringing a shareholder lawsuit, said: ‘In the meantime, the company is continuing to delay publication of its accounts and provided no adequate explanation as to what happened behind the scenes.’