Home REIT sells 40 properties for 60% average loss

investmentweek.co.uk:

The properties were chosen for their “limited prospects for income and capital return given the required capital expenditure in order to be brought up to specification”.

At a public auction held on 3 August, the trust exchanged on the sale of 40 properties, representing 1.6% of the company by number, for a total of £4.8m, which is expected to complete in around one month's time.

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The properties were chosen for their «limited prospects for income and capital return given the required capital expenditure in order to be brought up to specification».

Sold for an average of 39.4% of purchase price, Home REIT said this reflects the «vacant status of the majority of the sale properties and their condition».

The proceeds will be used «to reduce borrowings and provide working capital».

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Peel Hunt analyst Anthony Leatham argued that despite the properties falling on the «lower-end of the quality spectrum», the hefty discount is «worse than we thought and creates a challenging backdrop for AEW's efforts to stabilise the portfolio».

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