UK's Home REIT gets unsolicited buyout approach from Bluestar Group (updated)

Wirecard AG

16/02/2023 08:31

(Adds details on approach, background)
       Feb 16 (Reuters) - 
    UK's Home REIT  HOMEH.L , which has been under scrutiny over
the last few months after a short seller report, said on
Thursday it received an unsolicited approach from investment
firm Bluestar Group Ltd for a possible acquisition offer.
    The housing provider for the homeless did not give any
financial details but said any offer by Bluestar, a London-based
investment firm focused on pan-European real estate-backed
businesses, would likely be in cash.
    The company said that following a report by its investment
advisor, the board was considering all strategic options,
including a possible sale.
        The report from investment adviser Alvarium Home REIT
Advisors highlighted a "serious deterioration" in rent
collections for the quarter to November 2022 and identified
"serious challenges" in getting rent for December and January. 
  
        The payment of rent for the coming months was "highly
uncertain", the company added, further vindicating Viceroy's
claims in its scathing report in November, 
    questioning
     the ability of Home REIT's tenants to pay rent.
  
    Viceroy said it was unable to comment on the acquisition
approach as Home REIT had not disclosed the offer price and
added that rent deterioration mentioned by the company was
"exactly in line with Viceroy's thesis".
    Bluestar did not immediately respond to a Reuters request
for comment.
        Home REIT has missed a deadline to publish its annual
results after the report by Viceroy, best known for raising the
alarm on Germany's 
    Wirecard
    , raised questions about a range of issues, including the
ability of the firm's tenants to pay rent and the valuation of
its properties.
  
 (Reporting by Aby Jose Koilparambil in Bengaluru; Editing by
Dhanya Ann Thoppil)
 ((abyjose.koilparambil@thomsonreuters.com; +919986528692;))