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Is anyone attending the AGM on Monday? I think there are serious questions need answering re corporate governance with Home and Home Alvarium especially as Viceroy were right about rent collections . They also made allegations about inflated purchase prices for properties.
At this stage these are only low-ball speculations to fall it a fraud,
in many cases offers are done via intermediary shell entities for de-risking purposes.
It is a standard practice to form some sort of BidCo.
But yes, with all what's going on with property market (especially in vulnerable segment where tenants won't have default insurance like in commercial rent segment, plus this RNS with this crazy impairment of only 23% rent collection and 10m refurbishment bill) - offer very likely won't be gold-plated.
Got
Go to be a joke !
I too looked up this company this morning. Crazy that they could take over a portfolio of this scale and cost. I still believe there is sufficient equity given the original investment purchases and further capital raised to purchase more properties. The company however haven't admitted that there was some truth to the viceroy allegations that the company denied. Potential fraud?
Saw this on Bloomberg this morning....
Home REIT Plc: The social housing landlord that’s been targeted by a short seller said it got an unsolicited approach from Bluestar Group Limited regarding a possible cash offer. Bluestar now has until March 16 to announce a firm intention to make an offer.
Then if you check and see who Bluestar is... well its a shell with £170k of assets. More sculduggery from these Home Reit scummies.
https://find-and-update.company-information.service.gov.uk/company/12260861/filing-history
Per companies house Joseph Kahan, is an American with a correspondence address at Fairways House, George Street, Prestwich, Manchester, M25 9WS which is a two story office block . The website for Simpac is https://simpact.group/
Why did they get the gig?
I've written off my investment here. Live and learn
I can't see how they come back from this, clearly the sub-leaseholders feel like they have been loaded with FRI liabilities. Their immediate customers are not-for-profits, I can't see how they will continue to trade if they start going legal
Well I got this one wrong, nothing but bad news since suspended. Only hope is that it is a wake up call and gets sorted; divi paid but not looking good on arrears
From today’s Daily Mail:
“CRISIS-HIT homeless housing firm Home Reit has been forced to delay its annual results again as its auditor requested more time to complete work on the accounts.
The firm, whose shares were suspended this month after it failed to publish figures by the end of last year, said accountant BDO would ‘not be able to conclude its work and internal review process’ by the January 31 deadline.
It partially blamed BDO’s request for ‘substantial’ amounts of data relating to its portfolio, which numbers over 2,400 properties.
Home Reit planned to publish its results for the year to the end of August on November 28, but it delayed the figures after coming under attack from Viceroy Research, a hedge fund run by notorious short seller Fraser Perring.
Home Reit said the figures would be released ‘no later’ than the end of January. But this will also be missed.”
Total holding is unchanged (well it has 0.01% difference but I suspect that's rounding). What has happened is that they have had shares that they lent out returned to them (% of voting rights through financial instruments down from 1.38 to 0.44).
Interesting Black Rock up's stake from 10.07% to 11.02%
“Noble Tree says that various monies to refurbish, insure and provide other services for an 80-strong property portfolio housing homeless people in Northampton failed to arrive, despite assurances from Alvarium, Home Reit’s investment adviser.
Under Home Reit’s business model, certain funds are supposed to be supplied by the vendor of the property, but Noble Tree says it has been left with a £1.2 million shortfall. Matt Fearnley, the charity’s chief executive, said he would prefer not to be withholding rent from Home Reit, but “we have no choice because they won’t talk to us about this”. He said Noble Tree had received £800,000 towards upgrading the properties so that they could house vulnerable clients, but “the lease promised more”.”
@Old World Order: For the benefit of those of us who can't get past The Times paywall, could you please enlighten us as to why Noble Tree are refusing to pay £220,000 of rent per month since September? Thanks in advance!
BTW, the directors of Home are going to get their wrists slapped for their 30/11/22 RNS. The phrase "overdue arrears" is grievously deceptive. Arrears are arrears and Home had £660,000 of them, going back 3 months, when they put out the statement. Whether such arrears are legally considered to be overdue, under the terms of their lease, is neither here nor there. Home was owed a meaningful stack of cash and the tenant seems to have made it very plain that they're not going to pay.
From the Times today "The issue goes to the heart of Home Reit’s business model, which looks to have leaked a ton of money, and the board’s hapless stewardship. It says that, via Alvarium, it sources properties from vendors. But it’s yet to explain why buying 34 in Stoke, say, involved them being flipped three times in a day via two special purpose vehicles, with a portfolio the vendor collated for £3.2 million sold to Home Reit for £7.3 million.
Home Reit says vendors “typically provide” tenants with “additional funding, usually representing 12 months of rent”. Also, that a “full refurbishment is carried out, which is paid for by the vendor”. But it also says it “acquires newly refurbished properties”. So which is it? Both Noble Tree and Big Help would deny the vendor has either done the work or left the funding to do it. Where has the money gone? A clue, perhaps: one vendor’s overseas pad."
Noble Tree are withholding £661k of rent and are poised to withhold a further £220k. Looks like it’s all unraveling: Noble Tree Foundation in Home Reit row over promised funds
https://www.thetimes.co.uk/article/c695ce38-902c-11ed-8b99-f233af7a7956?shareToken=286f8e83262fd88900dcf93d700b1113
Home Reit short seller Fraser Perring set to pocket £4m https://thismon.ee/a/11611793
Either they are independent or are not. To me it seems that little has changed.
https://www.investmentweek.co.uk/news/4062194/home-reit-investment-adviser-distances-trust-ahead
Perring showing as the only Home REIT short seller remaining on ShortTracker although his Twitter account suggests he covered it on/by the 21 Dec 2022. Maybe he expects the shares to bounce back after the suspension is lifted?
Contagion seems to have caused Alvarium's listing yesterday to go pear shaped.
https://www.cityam.com/home-reit-investment-adviser-plunges-on-nasdaq-debut/
Maybe Perring is getting 2 for the price of 1? PI angel or opportunist?
https://ffj-online.org/2019/11/04/fraser-perring-chronicles-of-deceit-part-one/
Some strong accusations there. I wonder how much truth is in that article. I'd love to know what's really going on. I guess we'll find out around the end of the month....
Does anyone have an opinion about the relative credibility of Fraser John Perring vs Southern Investigative Reporting Foundation?
The TiM article is not well worded. "This is Money" does not seem to proof read their articles. They often mix currencies and units in articles as to make them unintelligible. Self-appointed "Financial website of the year"...my hairy harris.
According to:
https://www.homereituk.com/about-us/investment-advisor/
Alvarium seem to be running the show.
Why the change? Sorry, no idea. The optimist in me hopes that the change will help the market see more clearly who and how investment decisions are taken i.e. remove some of the smoke and mirrors that the short-seller highlighted. The pessimist in me worries it is Alvarium's attempt to throw the Home REIT management team under the bus.
It would have been good if the RNS had shed more light. Maybe we'll get more info before the share suspension ends.
Can someone explain this from https://www.thisismoney.co.uk/money/markets/article-11597785/Home-REIT-investment-adviser-sold-Alvarium.html
"Embattled Home REIT owner reshuffles ownership of investment adviser amid short-seller controversy and share trading suspension
The owner of Home REIT’s has sold off the division responsible for managing the property investor's portfolio, distancing itself from the embattled housing provider ahead of a US public listing.
In a stock market statement, Home REIT said Alvarium had entered into an agreement to sell Home REIT Advisors Limited (AHRA) to a newly formed entity owned by its management team 'funded by way of a promissory note'.
The sale also includes terms allowing Alvarium to re-acquire AHRA in the future 'for a purchase price equal to the promissory note outstanding'.
I thought that Home Reit was owned by it's share holders (me included -drat) and not Alvarium . Who owned Home REIT Advisors Ltd? And why sell it
In worst case, I imagine the properties could be sold or repurposed as student accommodation or refugee/migrant housing with little refurbishment required. I can't imagine planning permission being a major obstacle, but I may be wrong. £95/week compared to what some councils are paying for hotel block bookings may seem like a steal.
For my two cents worth, even at worst case scenario, property prices inflated and issues with rent stability and questionable housing associations/ charities. The company only has debt of 250 million against property portfolio of 2308. This includes circa 360 properties in London where minimum half million per property equates to 180 million . Only part I can't work out is the potential suit against the company , can anyone explain this?