Home Reit's loan repayment fees have been increased to 7 per cent.
It comes after the troubled real estate investment trust said its board was not able to secure a re-financing deal with its lender Scottish Widows in mid-June.
In a stock exchange update on Wednesday (July 3), Home Reit said: "The existing lender has revised the terms of the additional fee charged on the outstanding loan amount and the 5 per cent fee will increase to 7 per cent from July 1, 2024 until the full repayment of the loan.
"The lender expects to be fully repaid no later than December 31, 2024."
It said in June the company made a debt repayment of £17.1mn comprising a cash repayment of £14.9mn and net break gains of £2.2mn applied to loan principal. Total borrowings reduced to £114.6mn.
It reiterated it had been unable to secure a re-financing of the debt despite "extensive and advanced discussions" with another potential lender.
There will be more property sales in the short-term, it said, as part of a strategy to repay its outstanding borrowings in a "timely manner".
As of June 30 the company had total borrowings of £114.6mn, down from £131mn the previous month.
The update also shows the company has regained control of 70 per cent of its portfolio, meaning it can now collect rent from them.
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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