Eve Maddock-Jones, Investment Week, 12 June 2023:
This is one way to sum up the broken business model of Home REIT.
Launched in October 2020, the trust came to market with a noble objective of delivering “tangible social impact”, focused solely on tackling homelessness “responsibly”, while enticing investors with the promise of a decent, inflation-protected dividend.
But, as Investment Week’s senior reporter Valeria Martinez has learned over the past few months, this is not the reality, with the trust arguably in a state of ruin akin to some of its properties.
The article shines a light on the trust’s dealings with Liverpool-based developer Pathway Homes Group, now in creditors’ voluntary liquidation, which has left Home REIT with a partially demolished house it paid more than £600,000 for – an almost 400% premium compared to the price Pathway paid…
The situation has left a lot of questions for investors, with many now pursuing legal action against Home REIT through the claim launched by Harcus Parker in December.
James Carthew, head of investment companies QuotedData, said: “I am a shareholder in Home REIT – acquired for the same reasons as most investors in the company I should think, the chance to do something to alleviate the homelessness problem in the UK while earning a reasonable dividend yield. This morning [7 June], I finally feel compelled to join one of the legal cases against the company.
“The failures here seem criminal to me, and I feel that a number of people should be held accountable for them.”
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