Home Reit expects to sell off all of its properties by the end of this year, as part of the investment trust’s closure.
It has also doubled down on a pledge to “vigorously defend” itself against legal action from shareholders.
An update from the troubled trust claimed there has been interest from a “significant number of parties” following an extensive marketing campaign in the last quarter of 2024.
Offers for the full portfolio were received in February and the sale process is expected to be completed in the third quarter of this year.
The housing trust’s shares were suspended in 2023 after it missed its deadline to publish 2022 results.
It is also subject to an FCA investigation, though the regulator has not confirmed what this investigation is covering.
After this, a managed wind down of the company was started in July 2024.
The latest trading update, published on May 29, said there has been no update on the regulator’s investigation into the firm or on potential litigation from a group of shareholders.
It said no legal proceedings have commenced but it has received a letter of claim from law firm Harcus Parker on behalf of a group of current and former shareholders.
It said: “It should be noted that the company intends vigorously to defend itself in respect of the threatened litigation and has denied the allegations made against it.
“As previously announced, the company intends to bring legal proceedings against those parties it considers are responsible for wrongdoing.”
Home Reit first said it would defend itself against claims in August 2024.
The update added: “The company cannot comment any further on these issues at this stage as to do so may prejudice the company’s position in any potential proceedings. Any relevant announcements in this regard will be made at the appropriate time.”
The trust was set up in 2020 to invest in the provision of sheltered housing for the homeless but it has since found itself in trouble over mounting debts and the falling value of its portfolio.
tara.o’connor@ft.com
What’s your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com