Home REIT has exchanged on the sale of the final four properties in its portfolio, concluding a wind-down process for the social housing landlord that begun in July 2024.
The company said the deals for its remaining properties, which were sold following its July auction, are expected to be completed by the end of this month, ending to its disposal programme.
The final four assets, part of the 144 properties excluded from Home REIT’s £123m portfolio sale to Patron Capital in November, generated gross proceeds of £16.1m, a 7% discount to their £17.35m August 2025 valuation.
Following the latest sales, the company said the concentration of value in a single remaining asset meant it no longer met the requirements of the REIT regime.
HM Revenue & Customs confirmed the firm’s exit from the sector. The current level of expenses the company is incurring is expected to shield any income from corporation tax.
With fewer than 10 properties still on its books pending completion of the final sales, Home REIT has also agreed a further reduction in fees paid to investment manager AEW UK Investment Management, from £167,000 to £120,000 for the next three months, then falling to £42,000 for an additional three months.
As the wind-down nears completion, the board also plans to place four wholly owned subsidiaries into voluntary liquidation once the remaining property sales have been completed, to simplify its structure and enable planning for a future return of capital to shareholders.
However, Home REIT reiterated that any shareholder distributions remain subject to legal uncertainties, as the group faces litigation brought by Harcus Parker in late 2022, seeking compensation for investors it claims were misled by information provided by the company and its associates.
Michael O’Donnell, non-executive chairman of Home REIT, said: “While the ongoing threat of litigation remains, the sale of all the remaining outstanding properties represents a further important milestone in the execution of the managed wind down strategy, and the process of liquidating subsidiaries will move the company closer to returning any capital to shareholders.”
Shareholders are expected to receive a further update once the subsidiary liquidations have started.
Read Property Week‘s analysis of what went wong at Home REIT here.
