Home REIT extends takeover deadline as lawyers accuse firm of trying to ‘bypass accountability’
Beleaguered social housing investor Home REIT said it would extend the ‘put-up or shut-up’ deadline for a takeover this morning as discussions with potential suitor Bluestar “remain ongoing”.
The former FTSE 250 firm, which has seen a disintegration in its rent roll after a string of scandals in the past few months, said it would now extend the deadline until no later than the 13th April.
Home REIT announced it was mulling a sale last month as it acknowledged the dilapidated state of its property portfolio for the first time and admitted it would require between £15-20m to refurbish, after insisting it only acquired “fully refurbished” and “high quality” housing for months.
However, eyebrows were raised by the bid from Bluestar and perceived ties between the firm and Home REIT’s former investment advisor Alvarium. Bluestar denied ties between the firms.
Home REIT added today that there was still no certainty “that an offer will ultimately be made for the company, nor as to the terms on which any firm offer might be made.”
“A further statement will be made as and when appropriate,” Home REIT said.
The update this morning comes after Home REIT announced yesterday it was considering a change of investment advisor rather than a sale. A number of firms, including RM Funds, are understood to be in the running to have tabled proposals to manage the firm’s portfolio.
Morning Wire revealed in January that the firm was also under scrutiny from the National Crime Agency, and Home REIT said yesterday an investigation by Alvarez and Marsal was “ongoing”. Bosses added the firm was considering whether “material changes to its investment policy are necessary or advisable at this stage to continue as a listed company”.
Yesterday’s update drew the ire of lawyers at Harcus Parker, who said the proposal was “totally unsatisfactory”.
“An intention to explore amendments to the investment policy and potentially engage a new Investment Adviser bypasses the question of accountability as to the viability and execution of the existing policy by those who were responsible,” Jennifer Morrissey, Partner at Harcus Parker, said.
“No clarity has been given, and either Alvarium seem to be trying to wash their hands of Home REIT or Home REIT of Alvarium.”