Home REIT, the suspended homeless shelter provider, confirms Alvarium Fund Managers, its former alternative investment manager (AIFM) and its principal AlTi Re, have entered administration.

The former alternative investment manager (AIFM) of Home REIT (HOME) has collapsed, potentially complicating shareholders’ search for compensation for their losses in the suspended real estate investment trust.

A short statement from Home REIT this morning noted the announcement that Alvarium Fund Managers Limited, its former AIFM, and AlTi RE Limited, Alvarium’s principal, entered administration last Friday.

The board of the company, whose shares have been suspended since January 2023,  has previously issued pre-action letters of claim to both companies and also the already liquidated former investment adviser Alvarium Home REIT Advisors for their role in the alleged fraudulent over-valuation of assets in the homeless shelter provider.  

Home REIT said it was in contact with the administrators. “The company cannot comment any further on these issues at this stage as to do so may prejudice the company’s position in any potential proceedings.”

In their latest accounts at Companies House, both Alvarium Fund Managers and AlTi Re reported losses and warned of the “significant” financial and reputational damage they faced from potential litigation from Home REIT and the UK Financial Conduct Authority.  

Home REIT has previously said it intends to “vigorously” defend itself from any legal action from its shareholders but in a trading update in May it cautioned that its ability to return capital to investors from the ongoing disposal of assets could be constrained by the litigation.