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RNS Number : 1945N
Home REIT PLC
19 January 2023
19 January 2023
Home REIT plc
("Home REIT" or the "Company")
Appointment of External Property Manager and Update on Company
Audit
Home REIT plc (ticker: HOME), which funds the acquisition and
creation of high-quality properties across the UK that are
dedicated to providing accommodation to homeless people, announces
that Alvarium Home REIT Advisors Limited (the 'Investment Adviser')
has entered into an agreement with Simpact Group ('Simpact'), a
specialist social housing property manager, to accelerate and
further support the Investment Adviser's ongoing asset management
and monitoring programme. The cost of this significant investment
is borne solely by the Investment Adviser.
Simpact will assist the Investment Adviser with the following
ongoing workstreams:
- tenant liaison and monitoring, in addition to rent collection
and the recovery of rent arrears;
- a detailed review of the Company's portfolio and improved
disclosure on existing tracked metrics such as underlying
occupancy, the status of exempt housing benefit applications by
tenant partners and the type of residents in occupation, alongside
increased due diligence and assessment of tenants, their current
business plans and forecasts; and
- the provision of extensive operational advice to certain
tenant partners to improve underlying performance, including
reducing the approval period for exempt housing benefit
applications and increasing the rate of referrals from local
authorities.
Following the detailed review, and where applicable, if certain
assets are not forecast to improve performance within a sufficient
timeframe then Simpact will support the Investment Adviser with the
assignment of the relevant leases to a more suitable specialist
tenant partner.
Simpact currently manages and oversees a fast-growing social
housing portfolio across England and Wales, covering over 100 local
authorities. The appointment will result in a team of 40
individuals with extensive knowledge of all social housing tenures,
including exempt accommodation and extra care housing for
homelessness, supporting the Investment Adviser in achieving the
aforementioned review and delivering an increased level of
disclosure. The Simpact team brings a wide network of local
authority contacts and an existing network of charities, community
interest companies and registered housing associations, which will
be utilised to optimise the tenant composition of the
portfolio.
A further announcement on rent collection and the operational
performance of the portfolio following the detailed review
undertaken by the Investment Adviser and Simpact will be made in
due course.
Update on Company Audit
The Company has previously announced, it is standard practice
that, should material allegations be made against a company
undergoing an audit, then such company is subjected to an enhanced
set of audit procedures which include, but are not limited to, a
detailed review of the material allegations made against the
Company and its advisors.
The Company's key priority is the publication of its audited
financial statements for the year to 31 August 2022, and its
advisors have continued to work tirelessly with its auditor, BDO
LLP ("BDO"), with all parties working over the Christmas break so
that this can be accomplished as soon as possible. Whilst a
significant amount of work has been undertaken, as part of the
scope of the enhanced audit procedures, BDO has requested the
provision of substantial data sets across what is a granular
portfolio of over 2,400 properties. Whilst the Company expects to
be able to provide this additional information, BDO has advised
that it will not be able to conclude its work and internal review
process in advance of 31 January. The Company will continue to work
with BDO so that it is able to publish the results as soon as is
practically possible.
FOR FURTHER INFORMATION, PLEASE CONTACT:
FTI Consulting (Communications HomeREIT@fticonsulting.com
Adviser) +44 (0)20 3727 1000
Dido Laurimore
Eve Kirmatzis
Ellie Perham-Marchant
Oliver Harrison
The Company's LEI is: 213800A53AOVH3FCGG44.
For more information, please visit the Company's website:
www.homereituk.com
About Home REIT plc
Home REIT plc seeks to contribute to the alleviation of
homelessness in the UK, whilst targeting inflation-protected income
and capital returns, by funding the acquisition and creation of a
diversified portfolio of high-quality accommodation assets across
the UK which are dedicated to providing accommodation to homeless
people. The accommodation assets are let or pre-let on very long
(typically 20 to 30 years) leases, containing inflation-linked or
fixed uplift rent review provisions, to registered charities,
housing associations, community interest companies and other
regulated organisations which have a proven operating track record
in providing low-cost accommodation to homeless people and which
receive housing benefit or comparable support from local or central
government to fund the provision of such accommodation to homeless
people.
There is a critical need for further accommodation for homeless
people in the UK, due to an increasing homeless population and a
lack of available and affordable high-quality, fit-for-purpose
stock to address the problem. Local housing authorities are under a
statutory duty to secure accommodation for individuals who are
unintentionally homeless and in priority need but current
accommodation for homeless people is limited in quantum and often
sub-standard and uneconomical.
The Company focuses on investing in and creating well-located
properties that provide a sustainable level of rent for the tenant.
Within the homeless accommodation assets, there is a focus on care,
support, training and rehabilitation to provide vulnerable homeless
people with the skills and confidence to find long-term
accommodation and enable them to reintegrate back into society.
Savings are expected to be made to local authorities and other
providers of accommodation to homeless people via lower rents
versus more expensive alternative accommodation.
The Company is listed on the premium segment of the Official
List of the UK Financial Conduct Authority and its Ordinary Shares
were admitted to trading on the main market of the London Stock
Exchange, premium segment, on 12 October 2020.
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END
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