Home REIT recently announced that their new investment manager, AEW, has commenced the process of inspecting and valuing their property portfolio. This comes after the real-estate investment trust approved an amended investment policy and officially appointed AEW at a general meeting on Aug. 21.
Focusing on Stability and Returns
AEW’s primary focus is to stabilize Home REIT’s property portfolio and improve its financial condition. To achieve this, they are closely assessing each tenant, including their current status, occupancy of leased properties, and their ability to meet rental demands. Unfortunately, it is expected that some tenants will not meet the criteria to remain in the portfolio and will need to be replaced.
Collaborating for Success
AEW is also actively engaging with the liquidators of non-performing tenants Redemption Project CIC and Serenity Support CIC. The goal is to explore opportunities for re-tenanting and implement various asset management initiatives that will contribute to the overall success of Home REIT.
Comprehensive Inspections and Valuations
To thoroughly evaluate the entire portfolio, a subsidiary of Connells has been appointed to inspect all 2,473 properties within Home REIT’s portfolio. The target is to complete this process by mid-November. Additionally, Jones Lang LaSalle has been appointed to conduct valuations of the entire portfolio.
Sales to Boost Financial Position
In an effort to stabilize the company’s financial position, Home REIT agreed to the sale of 40 properties for £4.8 million ($6.0 million) on Aug. 4. Further sales are anticipated to contribute to this goal. As of Aug. 31, the company had cash balances of £13.5 million, subject to certain restrictions, along with approximately £800,000 of unrestricted cash.
