Home Reit Share Discussion Threads

[spectoacc] 19/4/2024 10:41

Ha yes - if you know the property, you know the CapEx you spent on it, perhaps still know the tenants (including those where HOME claim to have no info), then why not.

Has occurred to me a few times that I may be bidding against those who know the Lot much better than I do.

My 3 from January are all now completed fwiw; the 3 from February still no date yet.

Luckily the first 3 turn out to have all been managed by the same lettings agency, so I'm getting hold of gas certs etc. Deposits haven't been transferring tho - there's such a disconnect between ownership (a HOME subsid), seller (AEW), CIC (often bust, always dodgy), manager (lettings agent in these cases), and tenants (I've one who keeps calling me because neither AEW, nor the CIC, will deal with anything because they say they're no longer legally responsible - despite me not having a completion date).

In all cases bar one, tenants aren't paying rent.

Some will have made out like bandits legitimately, eg approached to sell portfolio at more than it was worth, now buying back at less than it's worth.

Most will be actual bandits.

[flyer61] 19/4/2024 10:31

be interesting to know if the have gone back to their original owners.....

[spectoacc] 19/4/2024 10:00

Good point, & other than the cheapos it appears they did sell a number of whoppers:

[rj allen] 19/4/2024 09:36

The last batch of 65 properties appear to have been sold for an average of £245,000 each!

[spectoacc] 19/4/2024 07:31

Interesting that they're claiming the sale proceeds are in line with the August valuation, and that overall, all the sales are.

This is the first I can remember that's met - most have been below.

Eg previous month: -7.7%. Month before: -15.5%. January: -8.4%. The December sales were merely stated as "33% below purchase price", but also as being the poorer properties.

And are they omitting fees? Allsop, and legals? Suspect they'll be reported elsewhere, and aren't included.


"Since August 2023, the Company has completed on the sale of 533 properties and exchanged on a further 240 properties. The gross proceeds from properties sold and exchanged totals £111.4m, which in aggregate is in line with the August 2023 draft valuation."

£144k per property? I must be watching different auctions. I've seen hundreds sell below £50k.

Based on the last 4 months, there's no way they're meeting the heavily written-down valuation, even before fees.

[spectoacc] 18/4/2024 07:11

The first part is in belly laugh territory:


"The letter of claim alleges that the Company, along with certain other parties, provided information to investors which was false, untrue and/or misleading.

The Company intends vigorously to defend itself in respect of the threatened litigation and has denied the allegations made against it.

Further, as announced on 5 March 2024, the Company intends to bring legal proceedings against those parties it considers are responsible for wrongdoing. To that end, the Company has itself recently issued pre-action letters of claim to Alvarium Fund Managers (UK) Limited (its former alternative investment fund manager) and AlTi RE Limited, its former investment adviser's appointed representative. The Company intends to issue further pre-action correspondence in due course."

[terminator101] 18/4/2024 07:05

What a mess huh

[williamcooper104] 14/4/2024 20:22

https://www.livpost.co.uk/p/special-investigation-the-collapsing

[spectoacc] 12/4/2024 06:47

Lol @cm21 - that article out 3 hours after I posted. Difficult to believe there's still revelations coming out on HOME.

Presented without comment:


"But the reason his role has triggered such interest is due to his personal ties to the former fund manager of Alvarium Home REIT Advisors, Gareth Jones.

Dawes went to Cardiff University with Jones, according to screenshots of their now deleted LinkedIn profiles seen by City A.M....

Jones stepped down from Home REIT in November 2022 for “health reasons”, according to a previous statement from the firm."

[triskelion] 12/4/2024 00:59

hxxps://hspg.co.uk/people/
"Charlotte Fletcher
General Council"
sic. LOL

[williamcooper104] 11/4/2024 23:12

There's a book to be written out of all this

[cm21] 11/4/2024 22:52

hxxps://hspg.co.uk/people/

Heads up temporary accommodation platform! Blimey

[cm21] 11/4/2024 22:46

hxxps://www.cityam.com/who-is-tom-dawes-the-home-reit-mystery-man-that-profited-from-property-deals/

[spectoacc] 11/4/2024 14:51

Quite enjoying being "inside" on the HOME fiasco. Spoken to the letting agent for the CIC for 3 of the houses I bought. Someone in the NE owned loads of them, sold them to the HOME CIC for double market value, and is now enjoying buying some back at half price.

For only 1 or the 3 houses did they do tenant find - the other 2 already had sitting tenants, much as we might expect from VR's allegations.

[williamcooper104] 10/4/2024 17:45

Yep only way to underwrite it is on the assumption that you need to fund a lot on refurbishment One thing to guess that but then to also have to guess the sf too

[spectoacc] 10/4/2024 07:15

They're all annoyingly priced to sell at auction - most of the ones I've looked at have been 18-22k Guide, and gone for c.30-45k. Worth perhaps 40-65k.

The key is finding the 30k purchase that's worth 65k, rather than the 45k purchase worth 40k :) I've seen at least one where someone paid 38k, plus fees, which will have needed c.10k, and been worth 40k max when finished.

When you can't go inside a lot of them, it's tricky. One of the latest I've got has no tenants, a rat infestation, and been left as bad as can be imagined.

It struck me last night that VR's point about AST lettings was underplayed - if HOME bought 3,500-4,000 houses, say avg 3 bed, anything up to 12,000 beds, just how many "homeless" were there to house? Every one I've looked at so far has been a bog-standard AST. At the lower end, but still.

[williamcooper104] 09/4/2024 15:00

Funny My quick reading of the lease is that in the last year of the contractual term the landlord can compel the tenant to enter into a new lease So basically it's a 40 year lease That allows you under GAAP to average in 40 years of rental increases Needless to say few commercial entities would enter into such a lease

[williamcooper104] 09/4/2024 14:56

The legal pack took about 5 minutes to read No EPCThe "passing" rent is £140k So guessing HOME paid about £2.8m (or c£1.4k psf)

[williamcooper104] 09/4/2024 14:50

Might ask if I can buy the SPV separately from the property incase there's any litigation equity there

[williamcooper104] 09/4/2024 14:48

Another two properties in London up at the next Allsop action; don't look too bad - from the outside at least which is all that's being shown - great location - and looks to be marketed at c£300 something psf - having a look at the legals, expect to be well put of bidding when I speak to my lawyer https://www.allsop.co.uk/lot-overview/investment-freehold-semidetached-building-in-london/r240411-158?searchid=m0IZmU6Ol6A8nxecpDuajm+lo0Jay8CkSzaRuiSSQ68%3D&idx=2

[spectoacc] 05/4/2024 16:04

Fwiw my HOME purchases from the January Allsops auction should complete the middle of this month - not great for HOME's cashflow when they all take so long.

[spectoacc] 04/4/2024 07:18

8% rent collection, which considering that includes the Mears portfolio..

But 12% if including the £100k transferred on the Friday bank holiday.

Oh, but what's this note? Rent collection includes arrears! So actual collection isn't even necessarily somewhere between 8% and 12%.

Positives? They've £334m of property, and only £144m of debt. I'm sure @wallywoo can come up with a valuation from that. 790m shares in issue.

Liquidation costs? Ongoing interest payments? Running costs? Owning property that isn't even paying a tenth of its rent? FCA investigation/fines? AEW's cut? Allsop's cut?

I reckon there might be 20p of value left at best; under 10p if relisted. You can buy c.10% yielding property co's, at c.60% discounts, that actually collect their rent (eg CLI).

[spectoacc] 27/3/2024 06:57

Brilliant. No surprise, since some of the fake-eo CIC's did zero management.

Only one of all the ones I've looked at was used for a cannabis farm, and in fairness in the NE, it's pretty common.

[cm21] 26/3/2024 19:45

hxxps://www.investmentweek.co.uk/analysis/4189186/home-reit-properties-uncovered-sophisticated-cannabis-grow-operations