Home REIT hit as two tenants enter liquidation

Aug 26, 2023

Two tenants of Home REIT, which funds the acquisition and creation of properties to house homeless people, have entered liquidation.

The two tenants, Gen Liv UK CIC and Lotus Sanctuary CIC, rent homes from Home REIT and make up 18% of its rent roll combined.

Liverpool-based Gen Liv makes up 5.7% of the annual rent roll, while Wolverhampton-based Lotus Sanctuary represents 12.5% of the annual rent roll. Both companies have gone into creditors' voluntary liquidation.

Gen Liv has appointed FRP Advisory Trading Limited as liquidators.

According to a statement from Home REIT, the company is in discussions with prospective tenants to take on new leases of Gen Liv UK CIC's and Lotus Sanctuary CIC's portfolios.

The statement added: "[It] should be noted that whilst discussions with prospective tenants are ongoing, arrangements have been made for existing care and support services to continue, to ensure that there is no impact on underlying residents.

"No resident will lose their accommodation as a result of the above creditors' voluntary liquidations."

Last year Home REIT announced it was being subject to an "enhanced set of audit procedures" by its independent auditor BDO LLP.

Home REIT later temporarily suspended the listing of its ordinary shares in January of this year, noting that it would relist them upon publication of its delayed 2022 financial report.

Home REIT's accommodation is let or pre-let to registered charities, housing associations, community interest companies and other regulated organisations that receive housing benefit or comparable funding from local or central government, on very long-term and index-linked leases.

Adam Carey