Crisis-struck real estate investment trust Home REIT’s largest tenant has officially slipped into arrears four weeks after entering voluntary administration, City A.M. reported this morning.
Lotus Sanctuary, a provider of housing to vulnerable tenants that comprises 12.5% of Home REIT’s total rental income, slipped into administration at the start of March after failing to secure a tax-advantaged exempt housing status.
Lotus chief Gurpaal Judge also runs two other tenants of Home REIT- Wolverhampton-based Eden Safe Homes and Tipton-based Redemption Project, according to the report.
A Home REIT shareholder told City A.M. “the more we learn, the worse it gets… The board’s claims on rent collection and tenant due diligence are being shot to pieces on a daily basis.”
The shareholder said a change of leadership “is needed at Home REIT”.
Proactive has reached out to Lotus and Home REIT for a comment.
Home REIT has faced pressure following a 27-page report by short-selling specialist Viceroy in November 2022, which raised concerns over its financial health, quality and diversity of its major tenants.
Home REIT denied allegations that its net asset value was artificially inflated and criticised Viceroy for disclosing addresses of certain properties owned by the company.
However, since the report's publication, Home REIT's rent collection has deteriorated, while around 67% of its portfolio also requires refurbishment at a cost of up to £20mln.
Shares have been suspended from the London Stock Exchange since January 3.