Last checked at 23 Aug 2023 07:00
FOR IMMEDIATE RELEASE
23 August 2023
Home REIT plc
("Home REIT" or the "Company")
Transfer of sub-leases
The Company announces that One (Housing & Support) CIC ("One CIC") has agreed to surrender its leases on 100 properties comprising a total of 418 beds (the "Properties").
Mears Limited, guaranteed by Mears Group PLC, the housing and social care provider, has been occupying the Properties on a sub-lease from One CIC. These sub-leases will now transfer to Home REIT, with Mears Limited becoming a direct tenant for the remaining lease term of c.6.6 years with an initial contracted rental income of £891,155 per annum.
The surrender agreement allows the Company to receive a sustainable income stream from a strong tenant covenant and is expected to generate significantly higher rent collection than has previously been received from One CIC in relation to the Properties, despite a lower headline rent (previously £1,227,405 per annum).
The Company continues to work constructively with One CIC to find sustainable solutions for the other 234 properties it currently rents from Home REIT. This transaction reduces the Company's exposure to One CIC from 13.5% to 9.5% by number of properties and 14.2% to 11.9% by contracted rent roll (as at 31 July).
The transaction is in line with AEW's strategy as Investment Manager to stabilise the Company's portfolio. The current occupiers of the Properties will not be impacted as a result of this transaction.
The person responsible for arranging the release of this announcement on behalf of the Company is FTI Consulting.
FOR FURTHER INFORMATION, PLEASE CONTACT:
FTI Consulting (Communications Adviser) Dido Laurimore Eve Kirmatzis Ellie Perham-Marchant Oliver Harrison | HomeREIT@fticonsulting.com +44 (0)20 3727 1000 |
The Company's LEI is: 213800A53AOVH3FCGG44.
For more information, please visit the Company's website: www.homereituk.com