The board of Home Reit has decided to pursue a managed wind-down of the trust. The decision, which is subject to shareholder approval, comes after Home Reit was unable to re-finance its £114.6m remaining debt.
On 17 June 2024, the Company announced that it had been unable to secure a re-financing of its existing debt facility on terms that it could recommend to shareholders, despite extensive and advanced discussions with a potential lender.
The re-financing of the debt was a key component of the continued advancement of the stabilisation strategy adopted in August 2023. As the re-financing had not been possible, the Company also announced that it was 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.
EXTENSIVE CHALLENGES
Michael ODonnell, Home REITMichael O’Donnell, Non-Executive Chairman of Home REIT, told the City this morning: “It is clear that Home REIT continues to face extensive challenges, including in respect of its debt position and pursuing and defending litigation action, and responding to an FCA investigation.
“Against this backdrop and the expected reduced size of the Company’s portfolio, following an extensive review the Board has concluded that the best course of action for shareholders is to propose a managed wind-down strategy.
“I would like to thank shareholders for their ongoing patience and support through the stabilisation process as we strive to address, and seek redress for, the issues facing the Company.”
