Home REIT has announced that Redemption Project CIC has agreed to surrender its leases on 146 properties, which accounts for approximately 6% of Home REIT's property portfolio.
Non-payment of Rent
According to Home REIT, Redemption has failed to pay rent for the year 2023. This follows the news from early August when Redemption, along with another tenant, Serenity Support CIC, entered into voluntary liquidation.
Transferring Leases to Mears Ltd.
Mears Ltd., which is guaranteed by housing and social care provider Mears Group, currently occupies 77 of the properties on a sub-lease from Redemption. These leases will now be transferred to Home REIT. Mears Ltd. will become a direct tenant for the remaining eight years of the lease term, generating an initial rental income of £732,720 per year.
Flexible Leases with Community Accommodation Group
For the remaining 69 properties, Home REIT has reached an agreement with the Community Accommodation Group for flexible leases with a term of five years.
Engaging with Tenants
AEW, Home REIT's new investment manager, has commenced engagement with all tenants. They have undertaken several actions to inspect and value the portfolio. The primary focus is to stabilize Home REIT's property portfolio and improve its financial condition to maximize income and capital returns.
Supportive Homes CIC Enters Liquidation
On September 7, Supportive Homes CIC, a non-performing tenant that owed 11.3% of the rent demanded in August, entered voluntary liquidation.
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