- Gen Liv UK and Lotus Sanctuary tenants enter voluntary liquidation
- Home REIT is negotiating with potential tenants to conclude new lease agreements
The crisis at Home REIT, which provides housing for the homeless, escalated after two of its tenants announced voluntary liquidation of creditors.
Home REIT, a publicly traded investment fund that buys property to rent to charities that provide beds for homeless and vulnerable adults, told investors on Monday that Gen Liv UK and Lotus Sanctuary’s tenants are in danger of collapse.
The couple together account for 18% of the company’s annual rent, according to Home REIT.
Home REIT Says No Resident Will Lose Their Home in Two Liquidations
Home REIT added that it is negotiating with potential tenants to enter into new portfolio lease agreements.
“It should be noted that while negotiations are ongoing with potential tenants, steps have been taken to continue operating existing care and support services to ensure essential residents are not impacted,” the brief statement said.
“No resident will lose their housing as a result of the voluntary liquidation of the above creditors.”
The company is stuck in disputes with several large tenants who have delayed payments to protest the condition of some properties.
Trading in its shares has been suspended since the beginning of the year after the firm failed to release results on time. Meanwhile, a forensic accountant was brought in to investigate allegations of bribery.
Home REITs are also facing numerous lawsuits from disgruntled investors.
Last month, he received an unsolicited takeover approach from an investment firm.
The firm touted itself as a socially responsible housing provider when it went public in 2020.
Credit: www.thisismoney.co.uk /