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Home Reit tenant teetered on the brink as he struggled to opt out of government-backed benefits
On the brink: Lotus Sanctuary has stopped paying rent to beleaguered Home Reit homeless shelter
One of the largest tenants of beleaguered homeless housing company Home Reit is on the verge of collapse as it struggles to get a contract for government-backed benefits.
Lotus Sanctuary, which provides assisted housing and accounts for about 12 percent of Home Reit’s rental income, no longer pays the company.
Lotus boss Gurpaal Judge said his company is in ‘substantial debt’ of £2.7m and is suffering from cash flow problems as it struggles to gain approval for ‘exempt status’ from local authorities, an email to the company revealed. personnel viewed by City AM.
It was reported earlier this month that Big Help Group, a Liverpool-based charity which is Home Reit’s largest tenant, and London-based charity the Noble Tree Foundation are ‘disputing their rent obligations’ and have made no rent payments for the three months to November 30 .
Home Reit had to postpone its full-year results again last week because its accountant had asked for more time to complete work on the accounts.