Two tenants providing accommodation for homeless and vulnerable people through beleaguered housing provider Home REIT have gone into liquidation.
Home REIT told investors on Monday that Midlands-based Lotus Sanctuary, which provides 939 beds for residents, predominantly women, and Gen Liv UK, which has 517 in the North West of England, were close to collapse.
The pair make up a cumulative 18% of Home REIT’s annual rent roll.
The company said it has appointed FRP Advisory Trading Limited as liquidators, and that it was in talks with prospective tenants to take on new leases for the two portfolios.
“It should be noted that whilst discussions with prospective tenants are ongoing, arrangements have been made for existing care and support services to continue, to ensure that there is no impact on underlying residents,” it said in a short statement.
Home REIT has been under scrutiny over the last few months after a short-seller report by Viceroy Research questioned the ability of its tenants to pay rent, among other issues.
In January, Home REIT had said Big Help Group - its largest tenant - and Noble Tree Foundation had not paid rent for the previous quarter, and that it was looking at options to obtain payment.
Trading in its shares has been suspended since 3 January.
