Home REIT says tenants have surrendered leases on over 600 properties

Home REIT says that it has reached an agreement with Big Help (a collection of tenants comprising; Big Help Homes CIC, Big Help Project Ltd, CG Community Council, Dovecot & Princess Drive Community Association, N-Trust Homes CIC and Select Social Housing CIC) for the surrender of its leases on over 600 properties which it leases from Home REIT, equating to around 30% of the company’s portfolio by number of properties. These lease surrenders completed on 28 May.

The company and AEW (the manager) say that they have diligently analysed the portfolio and its various tenancies to ensure there is a comprehensive handover with minimal disruption to occupiers. The properties are occupied by a mixture of private rented sector tenants on Assured Shorthold Tenancies and social tenants placed by local authorities on licences.

The tenancies will now transfer to Home REIT, enabling the company to directly collect the underlying income from these properties, increasing rent collection and facilitating asset management opportunities.

The company will be appointing various property managers to the surrendered properties, who will be responsible for the day-to-day management and rent collection.

The transaction is in line with the investment policy to stabilise the portfolio and increase rent collection. The current occupiers of the properties will not be impacted as a result of this transaction. [not immediately impacted, there may be consequences if they’re not paying rent].

The board and AEW say that they have considered all options and believe this achieves the best solution for the company and its shareholders, and allows the company to gain control of the properties, appoint property managers, collect the underlying rental income and remove Big Help as a tenant from the portfolio.

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