Rent collection dwindles to 14% as further Home REIT tenant enters liquidation
As 30 November, Home REIT tenants in liquidation accounted for 16.3% of annual contracted rent.
In the trust's monthly update, it revealed the vehicle's rent collection had taken a negative turn following last month's improvement from 3% to 18%, with just £600,000 collected in the month.
Marigold Housing, which leases 15 properties, representing 0.9% of rent demanded in November, entered liquidation on 15 November 2023, appointing Path Business Recovery as its liquidator.
Home REIT sells a further 153 properties at 65% loss
As 30 November, Home REIT tenants in liquidation accounted for 16.3% of annual contracted rent.
Jones Lang LaSalle has conducted external inspections on behalf of the trust as part of its stabilisation strategy, in order to determine suitability, capital expenditure requirements and income and capital return prospects.
To date, 0% of properties have been classified as being in a «very good» condition, with just 10% meeting the standard for «good».
The majority of properties (65%) have been determined as «fair», while 20% are in a «poor» condition and 4% are «very poor».
Vibrant has conducted property inspections to determine occupancy and found that 29% of the 813 properties inspected to date are vacant, with 71% classed as occupied, although the marker for this is for at least one bed occupied in the entire property.
Investment manager AEW is «pursuing all strategies» available against non-performing tenants, including legal action, and has served statutory demands and section 146 notices of forfeiture on some tenants.
Home REIT has utilised £15m of net sale proceeds to repay its debt to Scottish Widows, which stood at a total of £250m across two debt tranches when it was taken out, with total
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