Company Update
Summary by AI BETAClose X
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
3 August 2026
Home REIT plc
("HOME REIT" or the "Company")
Company Update
The Company today provides an update on the disposal of the remaining properties in the portfolio following recent auctions, as well as other corporate activity initiated as a consequence of the asset sales being close to finalisation.
Outstanding Property Sales
Following the results of the July auction, the Company has now exchanged on the final four properties in the portfolio. Of the 144 properties excluded from the transaction with Patron Capital (the "Transaction"), total gross sales proceeds of £16,140,780 have been achieved at auction versus the equivalent August 2025 valuation of £17,350,000, representing a discount of 7%. The properties recently auctioned are anticipated to complete by the end of August.
A condition of the Transaction announced on 2 March 2026 was that the Company would continue to provide certain transitional services to the acquirer. That obligation ceased on 31 July 2026.
Investment Management Arrangements subject to reduced fee level
On 22 August 2025, the Company announced that it had agreed with its investment manager, AEW UK Investment Management LLP ("AEW"), to revise the terms of its investment management agreement with the Company, reflecting the reduced size of the Company and the trajectory of the managed wind-down. As the Company now holds fewer than 10 properties, AEW's monthly fee of £167,000 will reduce to £120,000 in three months from 29 July 2026, and reduce further to £42,000 after an additional three months.
Satisfying conditions of the REIT Regime
Following the most recent disposals, the Company expected a concentration of value in a single asset which triggers an exit from the UK REIT regime. Accordingly, the Group advised HMRC that it exited the REIT regime with effect from 28 July 2026, which was confirmed by HMRC on 29 July 2026. It is expected that the current level of expenses that the Company is incurring will shield any income from corporation tax, however future events could change this.
Proposed liquidation of subsidiaries
Following completion of the remaining outstanding property sales detailed above, it is anticipated that the Company's wholly owned subsidiaries Home Holdings 1 Limited, Home Holdings 2 Limited, Home Holdings 3 Limited and Home Holdings 4 Limited, respectively will enter voluntary liquidation (the "Subsidiary Liquidations").
The Board considers that the proposed Subsidiary Liquidations is a necessary step to allow the Company to advance and finalise the planning for any subsequent return of capital to shareholders by the Company in accordance with the announcement on 1 April 2026.
The Company has previously indicated that its ability to make distributions to shareholders continues to be constrained whilst it faces potential group litigation or other claims. The Company is working intensively with its advisors in relation to these matters and expects to update shareholders further following commencement of the Subsidiary Liquidations.
Commenting, Michael O'Donnell, Non-executive Chairman of the Company, commented: "While the ongoing threat of litigation remains, the sale of all the remaining outstanding properties represents a further important milestone in the execution of the Managed Wind Down strategy, and the process of liquidating subsidiaries will move the Company closer to returning any capital to Shareholders."
FOR FURTHER INFORMATION, PLEASE CONTACT:
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FTI Consulting (Communications Adviser) Dido Laurimore Bryn Woodward
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+44 (0)20 3727 1000 |
The Company's LEI is: 213800A53AOVH3FCGG44.
For more information, please visit the Company's website: www.homereituk.com
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