Home REIT PLC - London-based real estate company focusing on housing for the homeless - Proposes managed wind down as is unable to pay existing debts owed to Scottish Widows Ltd by December 31. Total debt is set to stand at £90.1 million, following a £24.5 million payment, which is pending amid planned property sales. Company says there exists considerable shareholder interest to wind down. Intends to publish circular in the coming weeks to convene a general meeting. Says although the company needs to realise certain property assets quickly in order to pay off debts, it intends to add value to properties during the wind down and sell remaining properties at a time which will generate the most shareholder value and reduce disruption to tenants. Says distributions to shareholders will be constrained as it faces potential litigation due to investor losses and a Financial Conduct Authority investigation. Will update shareholders on timing of share capital returns in due course.

Chair Michael O’Donnell said: ‘It is clear that Home REIT continues to face extensive challenges, including in respect of its debt position and pursuing and defending litigation action, and responding to an FCA investigation. Against this backdrop and the expected reduced size of the company’s portfolio, following an extensive review the board has concluded that the best course of action for shareholders is to propose a managed wind-down strategy. I would like to thank shareholders for their ongoing patience and support through the stabilisation process as we strive to address, and seek redress for, the issues facing the company.’

Current share price: 38.05 pence, suspended since January 3, 2023

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