Daily Mail

Home REIT hit as two of its tenants collapse

- By Calum Muirhead

TWO tenants of troubled landlord Home REIT have collapsed, intensifyi­ng pressure on its finances.

Gen Liv UK and Lotus Sanctuary, which combined make up 18.2pc of the company’s annual rent roll, have entered liquidatio­n agreements with creditors.

Gen Liv provides around 517 beds to vulnerable people in northwest England while Lotus offers 939 beds for its residents, most of whom are women.

Home REIT, a landlord to the homeless, is now in talks with prospectiv­e tenants to take over the leases. It stressed ‘arrangemen­ts have been made’ to ensure residents would continue to receive existing care and support services, although details were not disclosed. It added that ‘no resident will lose their accommodat­ion’ as a result.

The beleaguere­d property firm has been gripped by crises since November after short-seller Fraser Perring attacked it by questionin­g its business model.

It is in dispute with charity tenants such as Liverpool-based Big Help, which have withheld rent payments in protest against the conditions of some properties.

Its shares have been suspended since the start of the year after it failed to publish financial results on time, and shareholde­rs are nursing large losses.

A forensic accountant is investigat­ing bribery allegation­s.

Home REIT also faces multiple lawsuits from investors. And it is under growing scrutiny over its claims of being a socially responsibl­e investment, and over its relationsh­ip with property dealmaker Christophe­r Downing.

It follows reports that Gareth Jones, a partner at Home REIT’s former investment adviser Alvarium, told Downing to urge tenants to ‘corroborat­e’ the firm’s sustainabi­lity credential­s as part of a ‘box- ticking exercise’.

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