REG - Home REIT PLC - Completion of sale and update on capital return

Home ReitAnnouncement

Wed 13:30

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RNS Number : 1102Z  Home REIT PLC  01 April 2026

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INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE
A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

1 April 2026

Home REIT plc

("Home REIT" or the "Company")

Completion of sale of 706 asset portfolio for £123 million

And

Update on capital return

Further to the announcement of exchange on 2 March 2026, the Board of Home
REIT is pleased to announce completion of the disposal of 706 properties,
representing the majority of the Company's portfolio of assets, to Patron
Capital for a gross purchase price of £123 million (the "Transaction").

The initial gross proceeds of £98 million, which includes the deposit
received at exchange, has now been paid. This results in net proceeds
receivable by the Company of £94.2 million, following the deduction of fees
and expenses associated with the Transaction and certain reconciliation
adjustments. An additional deferred payment of £25 million will be received
on 1 April 2027, 12 months from the date of completion, which is not subject
to any conditions or deductions and is secured by a bank guarantee.

The remaining properties in the Company's portfolio were valued at £17.35
million in the valuation report prepared by Jones Lang LaSalle as at 31 August
2025, and the sales process in relation to the majority of these properties is
expected to conclude in the first half of 2026. On 26 March 2026, the Company
exchanged on the sale of 29 of these properties for an aggregate gross
consideration of £4.67 million, in line with their valuation as at 31 August
2025. The majority of the remaining 115 properties are expected to be sold
within the first half of 2026.

The Board has been working extensively with its advisers to determine the
appropriate mechanism for, and timing of, any returns of capital to
Shareholders and this is now the Board's key priority following successful
completion of the Transaction.

The Company has previously indicated that the ability of the Company to make
distributions to shareholders continues to be constrained whilst the Company
faces potential group litigation or other claims. In addition, the Company
continues to incur significant costs defending itself and its former directors
from shareholder related potential litigation.

The Company had noted, when moving to the Managed Wind-Down of the Company in
2024, that the Company would eventually be placed into liquidation, and its
listing cancelled, when the Managed Wind-Down is complete. The Company now
considers any return of capital to Shareholders should be made via, and would
therefore follow the commencement of, any liquidation process.  This will
ensure any return of capital is timely, transparent, cost effective and
consistent with the Board's legal and fiduciary duties and obligations as
directors of the Company.

The Company notes that a liquidation process would not affect the ability of
the Company to pursue legal action against those who may be liable for the
losses it has suffered, subject to an ongoing commercial assessment of the
cost-benefit analysis.

The Company has appointed Ernst & Young LLP to advise during the second
quarter of 2026 on preparation for the Company to enter a solvent member's
voluntary liquidation.  Any future proposal by the Company to enter
liquidation remains subject to:

(a) alignment with the continued Managed Wind-Down of the business, including
the sale of remaining properties in the portfolio, with a view to maximising
realisations for the benefits of all stakeholders;

(b) continued engagement with key stakeholders, including shareholders of the
Company, the FCA and SFO; and

(c) a detailed assessment of the financial position of the Company and its
subsidiaries at the time of any future resolution(s) put to shareholders for
the Company to enter liquidation, supported by professional advice.

The Company has engaged with the FCA for the Company's listing to be restored
now that the Company's half yearly report for the period ended 28 February
2025 has been published. However, the listing of the Company's shares would
subsequently be cancelled in conjunction with any liquidation process.

The Company is working intensively with its advisors in relation to the
matters above and expects to update shareholders further during the second
quarter of 2026.

Michael O'Donnell, Non-executive Chair of the Company said: "We are delighted
to reach this key milestone in the Managed Wind-Down of the Company, which now
rightly brings into focus the appropriate mechanism for, and timing of, any
return of capital to shareholders, on which the Board is taking professional
advice.  We look forward to providing further updates during the course of
Q2."

FOR FURTHER INFORMATION, PLEASE CONTACT:

 FTI Consulting (Communications Adviser)  HomeREIT@fticonsulting.com (mailto:HomeREIT@fticonsulting.com)

 Dido Laurimore                           +44 (0)20 3727 1000

 Bryn Woodward

 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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