Troubled real estate investment trust, Home Reit, is working to recover almost 150 properties from a housing charity that has entered administration.
In a stock exchange notice today (June 4), the company issued an update on the situation with Noble Tree Foundation which is a tenant of 143 properties in Home Reit's portfolio.
It said this represents around 7 per cent of rent demanded in April.
The Charity Commission launched an inquiry into Noble Tree in October 2023.
Home Reit said: "The company and [investment manager] AEW are working closely with the appointed administrator, CBW Recovery LLP, to arrange the surrender of Noble Tree's leases and a comprehensive handover of its tenancies. Underlying residents of the properties will not be impacted by the surrender of Noble Tree's tenancies."
The properties leased by Noble Tree are let to tenants in the private rented sector.
These are expected to have transferred to Home Reit, which said it will collect the underlying income from the properties, increase rent collection and facilitate other asset management activities.
Home Reit is then set to either relet the properties to a social use provider or appoint a property manager, who will be responsible for the day-to-day management and rent collection.
A year ago, Home Reit appointed investment manager AEW, which is understood to be working on stabilising the portfolio and pursuing legal action.
Since August last year, the investment trust has sold off hundreds of properties to reduce its debts and in February this year, the FCA launched an investigation into the trust.
tara.o'connor@ft.com
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