Home Reit Share Discussion Threads

[spectoacc] 02/10/2023 07:35

Got to assume all of the £216m debt is going to need paying off - sales raised c.£4.8m & £22.8m, the latter at 32% of the price paid. I'm leaning more towards @Wc104's outcome.

[cc2014] 02/10/2023 07:31

yeah and the 3% = £0.1m for the month.

[spectoacc] 02/10/2023 06:56

7-8% over LIBOR :)

Good point re fund raise. HOME clearly wasn't meant to collapse so soon - but collapse it was always going to. If you pay double market value for property that is swiftly managed into the ground by some highly dubious CIC's, you've only a few years.

The Venice chap with his 12 month kickbacks implies the CIC's were meant to keep everything going for a couple of years - witness the sub-letting to Mears at rents lower than the rent to be paid to HOME.

Anyway, I've said enough - will all come out in the wash eventually. But yes: the FCA will fine the co AKA shareholders, they always do.

[williamcooper104] 01/10/2023 19:17

Really hope the FCA fine Alverium and possibly the BoD personally (they ought to have insurance for that) rather than putting more pain on the innocent party in all this - the shareholder/mugs That they have a strong balance sheet was only because they'd only recently raised equity before Victory attacked and so hadn't managed to spend much of it Added to AEW wanting the fees Widows will be very keen not to be seen pulling the plug and why bother when AEW are doing, at shareholders expanse, what they'd be paying an administrator to do - another lender might do so or at least reprice the loan up to 7-8%

[spectoacc] 01/10/2023 14:07

It's only the low gearing - and the fact 7% of tenants were still rent-paying - that will save them IMO. What's left unsold above that 7%, and after the debt has been repaid, is likely to need some serious CapEx IMO.

Insolvency = the end of AEW's juicy fees, so can't see that happening.

Be interesting to see if the FCA fine the co eventually too - as many commented at the time, the RNS's coming out were beyond ridiculous. "Nothing to see here/we're collecting 100% of rent" etc.

(Oops, no we're not. Ah, now we're collecting 7%. Now we've put AEW and a 31-yr-old in charge to sort the rent collection. Ah, it's still at 7%).

[williamcooper104] 01/10/2023 13:39

When you're selling assets to buy your interest you are in the "interests of all stakeholders" territory Otherwise known as the zone of insolvency

[flyer61] 01/10/2023 10:35

Looks like it is being run as if it is already in bankruptcy. Just the 'model' has changed. Name change...count on it.

[williamcooper104] 01/10/2023 08:52

If only DGI9 had HOMEs balance sheet

[spectoacc] 01/10/2023 08:20

I think there'll be something left, mainly because debt was low, and they spent c.£900m originally. Can see AEW playing the long game - dump enough at c.1/3rd cost to cover fees, running costs, repay Scot Widows, then keeping what remains listed, to give them something to manage/draw fees from.

It's all very WPCT/SUPP/INOV-esque, where Schroders took on Woodford's basket case IT and continued to run it into the ground - whilst getting amply rewarded.

Doubtless a name-change will be next on the cards.

[cruelladeville] 30/9/2023 18:00

Death throws. Nothing will be left over for share holders after all the corporate vultures are fed.

[spectoacc] 30/9/2023 15:42

I'm still not 100% where the culpability is but even assuming the Board weren't directly involved with the looting (struggle to put it another way), they were more than remiss in continuing to issue RNS's denying allegations which in the full response, they basically confirmed. And like M&G and their continued buying, once the allegations were out it was a simple job to get on Google and prove some - we all did.

Why didn't the Board do that?

HOME been fascinating and still some way to run IMO. Next set of Allsops sales (beginning of November) should be interesting - the HOME houses I've been in so far have been beyond awful.

AEW are at least keeping it just about solvent - and keeping their fees rolling in. Can they keep a profitable rump of ESG'd and CapEx'd property I wonder..

[williamcooper104] 29/9/2023 20:02

Ideally the ambulance chasing lawyers ought to be stepped down as a new board sues all and sundry on behalf of shareholders But alas don't see that happening

[williamcooper104] 29/9/2023 20:01

Criminal charges always hard to prosecute; but surely there should be some decent civil damages - Alverium and the valuers

[little beaker] 29/9/2023 18:25

Lol, is anyone going to be held account or go to prison? Nah basketcase UK isn't it.

[terminator101] 29/9/2023 12:34

More breaking news

Home reit is still a pile of pish.

In fact the pile of pish is getting bigger.

Ends.

[flyer61] 29/9/2023 07:49

Did Mr Venice target any other REITs I wonder. Or anybody with a similar business model and lackadaisical board…

[cc2014] 29/9/2023 07:45

Every sale makes it easier to get the accounts done

[spectoacc] 29/9/2023 07:38

HOME is the gift that keeps on giving, and keeps surprising.

I thought they'd done a lot better on prices yesterday, when comparing achieved auction prices to last Land Registry sale prices.

But - it seems the Land Reg show only what the Venice crook bought them at. HOME paid perhaps twice that after they'd been flipped through a few SPVs, in block transactions that don't show up anywhere.

Worse - if that were even possible - THIS ISN'T AT 32% OF NAV. It's at 32% of the lower figure of what they paid.

Some yesterday were bought only earlier this year - but for others, Knight Frank were upping the valuations based on the income coming in (lol).

The longer this goes on, the more AEW's fees, the Board's salary & expenses, & other running costs take out. Will there be a core of income-earning properties left? When rent collection was 7%?

Shareholders will surely get something, but starting to question whether it'll reach 20p guesstimate.

[flyer61] 29/9/2023 07:31

I guess the board didn’t do site visits then…..

[spectoacc] 29/9/2023 07:09

Not sure what I can say about this, other than that I watched the auction yesterday, and other than a few that didn't sell, almost all attracted keen bidding and decent prices. One was on at Reserve 250k, sold for £740k.

But - seems HOME so comprehensively shafted on purchase.

Working capital and debt reduction - these also aren't the last sales.


"The Company announces that at a series of public auctions held over the last eight days, the Company has exchanged on the sale of a further 137 properties, representing 5.6% of the Company's portfolio by number, for £22,845,000 with completion expected in approximately one month's time (the "Sale Properties"). The majority of the assets by value were included in an auction which took place on the 28 September 2023.


AEW, as Investment Manager to the Company, identified a portfolio of properties that were in poor condition, largely vacant and requiring significant capital expenditure in order to be brought up to specification. Of the properties exchanged for sale, 100 properties were subject to leases with tenants in liquidation which will be surrendered prior to completion. The proceeds from the Sale Properties represented an average of 32% per cent of their purchase price. Sale proceeds will be used to reduce borrowings and provide working capital as part of AEW's strategy to stabilise the property portfolio."

[apollocreed1] 25/9/2023 23:41

Hopefully the above failings are included in the class action against HOME being run by Harcus Parker.

[wskill] 25/9/2023 18:25

Are the auctions just another part of the fraud helping cover their tracks cannot understand why no fraudsters have not been arrested ,very strange behaviour from the institutions invested here we are all aware who they are not a peep. So they are happy to allow investors funds to be stolen of course its not their money .
What sane person would invest cash with them in the future.

[nexusltd] 25/9/2023 16:35

@SpectoAcc. Do you know if it will be possible to to access the auction hammer price after the 27th & 28th Sept on the Allsops website?