Home REIT Confirms Tenant Hasn’t Paid Rent; Working to Fix Issues

By Joe Hoppe

Home REIT PLC confirmed Wednesday that tenant Lotus Sanctuary CIC hasn’t paid rent for the quarter to Nov. 30, and it was working constructively with Lotus to fix the tenant’s operational issues.

The real-estate investment firm spoke in response to recent media reports in City AM, which said the tenant was close to collapse as it failed to secure sign offs for government-backed housing benefits, citing an internal Lotus email. Home REIT said that as of Aug. 31, Lotus represented around 12.2% of its overall rent roll.

Home REIT said its help to Lotus includes advice from Simpact Group, who was recently appointed to accelerate a detailed continuing review of its own portfolio.

If Lotus isn’t viable as a going concern and it enters administration or liquidation, Home REIT said it will seek to assign leases to alternative providers, which it said it has a track record in, or alternatively grant short-term leases to local authorities or registered housing associations.

Home REIT also said it has issued a number of statutory demands to tenants in January, after it said on Jan. 12 that it has seen a deterioration in its rent collection.

Shares in the company were temporarily suspended on Jan. 3 as its auditor BDO LLP completes an enhanced set of procedures, delaying the publication of its fiscal 2022 results.

Write to Joe Hoppe at [email protected]

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