Home REIT Sells 40 Properties For 60% Average Loss

At a public auction held on 3 August, the trust exchanged on the sale of 40 properties, representing 1.6% of the company by number, for a total of £4.8m, which is expected to complete in around one month's time.

'The circle is collapsing': How a demolished house in Lancashire uncovered Home REIT's broken business model

The properties were chosen for their "limited prospects for income and capital return given the required capital expenditure in order to be brought up to specification".

Sold for an average of 39.4% of purchase price, Home REIT said this reflects the "vacant status of the majority of the sale properties and their condition".

The proceeds will be used "to reduce borrowings and provide working capital".

Home REIT's investment policy overhaul reveals depth of issues facing the trust

Peel Hunt analyst Anthony Leatham argued that despite the properties falling on the "lower-end of the quality spectrum", the hefty discount is "worse than we thought and creates a challenging backdrop for AEW's efforts to stabilise the portfolio".

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