Emergency upheaval at troubled Home REIT
Emergency upheaval at troubled Home REIT
Troubled homeless landlord Home REIT has unveiled contingency plans for an overhaul under a new investment manager.
The real estate company, which has been in crisis since last year when questions were raised about its finances and business model, wants to move away from its focus on housing only for the vulnerable and instead invest in housing of all kinds.
New investment manager AEW will restructure its portfolio, making rental periods more flexible to ‘better align’ with the needs of residents and municipalities.
Everything changes: Home REIT said the new strategy needed to be implemented “urgently”.
Home REIT said the new strategy needed to be implemented “urgently”. It collected just 7 percent of the nearly £8.8 million in rent it owed for the May and June period.
Investors will vote on the proposals on Aug. 21, with directors recommending approval.
But critics say the move goes against the company’s original purpose.
Jennifer Morrissey of law firm Harcus Parker, which is filing a shareholder lawsuit, said: “In the meantime, the company continues to delay the publication of its accounts and has not provided an adequate explanation for what happened behind the scenes.”