REG - Home REIT PLC - Agreement secured for surrender of leases

Home ReitAnnouncement

29/05/2024 07:00

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RNS Number : 1631Q  Home REIT PLC  29 May 2024

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THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

 

29 May 2024

Home REIT plc

("Home REIT" or the "Company")

 

Agreement secured for surrender of leases

 

The Company announces that it has reached an agreement with Big Help ('Big
Help' 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 circa. 30% of the
Company's portfolio by number of properties. These lease surrenders completed
on 28 May.

The Company and AEW 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 ("PRS") tenants on Assured Shorthold Tenancies ("ASTs") 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 Company's 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.

The Board and AEW 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.

 

FOR FURTHER INFORMATION, PLEASE CONTACT:

 FTI Consulting (Communications Adviser)  HomeREIT@fticonsulting.com

 Dido Laurimore                           +44 (0)20 3727 1000

 Eve Kirmatzis

 Oliver Harrison

 

The Company's LEI is: 213800A53AOVH3FCGG44.

 

For more information, please visit the Company's website: www.homereituk.com
(http://www.homereituk.com/)

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