Home REIT PLC Agreement secured for surrender of leases

RNS Number : 1631Q

Home REIT PLC

29 May 2024

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

 

29 May 2024

Home REIT plc

("Home REIT" or the "Company")

 

Agreement secured for surrender of leases

 

The Company announces that it has reached an agreement with Big Help ('Big Help' comprising; Big Help Homes CIC, Big Help Project Ltd, CG Community Council, Dovecot & Princess Drive Community Association, N-Trust Homes CIC and Select Social Housing CIC) for the surrender of its leases on over 600 properties which it leases from Home REIT, equating to circa. 30% of the Company's portfolio by number of properties. These lease surrenders completed on 28 May.

The Company and AEW have diligently analysed the portfolio and its various tenancies to ensure there is a comprehensive handover with minimal disruption to occupiers. The properties are occupied by a mixture of private rented sector ("PRS") tenants on Assured Shorthold Tenancies ("ASTs") and social tenants placed by local authorities on licences.

The tenancies will now transfer to Home REIT, enabling the Company to directly collect the underlying income from these properties, increasing rent collection and facilitating asset management opportunities.

The Company will be appointing various Property Managers to the surrendered properties, who will be responsible for the day-to-day management and rent collection.

The transaction is in line with the Company's investment policy to stabilise the portfolio and increase rent collection. The current occupiers of the Properties will not be impacted as a result of this transaction.

The Board and AEW have considered all options and believe this achieves the best solution for the Company and its shareholders, and allows the Company to gain control of the properties, appoint property managers, collect the underlying rental income and remove Big Help as a tenant from the portfolio. 

 

FOR FURTHER INFORMATION, PLEASE CONTACT:

FTI Consulting (Communications Adviser) Dido Laurimore Eve Kirmatzis Oliver Harrison

[e-mail] [phone]

 

The Company's LEI is: 213800A53AOVH3FCGG44.

 

For more information, please visit the Company's website: www.homereituk.com

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