Valeria Martinez and James Baxter-Derrington, Investment Week, 20 December 2023:
The law firm representing Home REIT investors has progressed legal action against the trust and its former adviser, Alvarium, which today (20 December) reported its portfolio is now worth less than half of what it spent on acquisitions…
In a regulatory update today, the trust said the portfolio of 2,473 properties, as of 31 August 2023, was worth £412.9m, a reduction of £564.1m (57.7%) from the unaudited historical acquisition costs, excluding purchase costs…
‘Failings and mismanagement’
Richard Williams, property analyst at QuotedData, described the revaluation as “staggering”, suggesting investors have been misled regarding the state of the portfolio.
“Recent sales have been at huge discounts, but we were led to believe these were the worst in the portfolio,” he said. “This new valuation report shows that pretty much the whole portfolio is in a state of disrepair and the value of each property was vastly inflated.
“It is clear that the failings and mismanagement here is off the charts.
“The galling thing for investors is that the hundreds of millions they invested was supposed to be spent on doing good for the most vulnerable in society but instead was spent on run-down, unliveable properties.”
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