Home Reit Share Discussion Threads

[spectoacc] 12/4/2024 05:47

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] 11/4/2024 23:59

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

[williamcooper104] 11/4/2024 22:12

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

[cm21] 11/4/2024 21:52

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

Heads up temporary accommodation platform! Blimey

[cm21] 11/4/2024 21:46

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

[spectoacc] 11/4/2024 13:51

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 16:45

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 06:15

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 14:00

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 13:56

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 13:50

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

[williamcooper104] 09/4/2024 13:48

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 15:04

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 06:18

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

[spectoacc] 26/3/2024 16:36

Interesting, thanks @Flyer61. It's Land Reg holding up all mine - until the leases get removed, it's total limbo. Allsops have been coy about how long others are taking, but I'm sure I'm not alone.

The ones I've bought are a real mixed bag - those that were already tenanted before getting bought, flipped between SPVs, and sold on to HOME, seem pretty good.

Have seen a couple that have clearly had money spent on them, only to get smashed up.

I've one that if it isn't sorted in the next 2 months, I can and will pull out from - drug den :)

[flyer61] 26/3/2024 16:24

Spec,

I actually went and viewed two this time. NW England. They had both had quite a bit of money spent on them. HOWEVER, they didn't sort the roofs out so damp walls everywhere. What a waste of effort. Haven't checked slae prices yet.

In the legal pack one had the insolvency practitioners sign off for the lease removal so should be able to complete on time

[tradez4dayz] 25/3/2024 18:41

Not again! You would have thought they learnt their lesson the first time

[spectoacc] 25/3/2024 06:47

"The regulator is probing whether the fund managers then misled the market and investors over the financial stability of the firm and its tenants."

Very slowly indeed.


I've now bought 5 former HOME properties from Allsop auctions, and not a single one has completed yet after months. Makes me question their RNS's.

[triskelion] 25/3/2024 01:18

Published 20 March, curiously only appeared in the paper edition 21 March.

The inevitable wheels grinding slowly.

[spectoacc] 05/3/2024 07:22

A number of points from this morning's update:


· "As announced on 15 February 2024, 119 properties exchanged for sale at auction for a total of £5.7m with completion expected during March."

No, they will not. I bought several HOME properties at the auction before last - completion dates long since passed. They have to remove the CIC leases at Land Reg, and there's seemingly no ETA.
Bought more at the last auction, and they won't complete in March either.


"· The Company continues to make encouraging progress on re-financing, as part of the strategy for the long-term financial stability of the Company."

ie, still no refinancing yet.


" An additional 82 internal property inspections have been completed in February taking the total to 1,904 as at 29 February 2024. The inspection programme is due to continue throughout March."

82? In a month? They also have little idea about the ones they're selling - no Gas certs, no electrical certs, no transfer of deposit, no keys, in some cases no EPC (ie illegally let).


"· The Company intends to bring legal proceedings against those parties it considers are responsible for wrongdoing."


At last!! But pray tell, which parties do HOME consider "..Responsible for wrongdoing"? Guessing not the board, for whom fiduciary duty appears a flexible concept?