Home REIT’s investment adviser is being bought out by its management team.
Alvarium RE has entered into an agreement with the management of Alvarium Home REIT Advisors to sell the business.
AHRA will be put into a newly formed entity owned by the management of AHRA, and funded by way of a promissory note.
But the sale also includes specific terms allowing Alvarium RE to reacquire AHRA in the future for a purchase price equal to the promissory note outstanding.
The arrangements were made on 30 December, prior to the recently completed merger and listing of Alvarium Investments in the US.
Home REIT told shareholders this morning that all contractual arrangements between Home REIT and its adviser, including fees, term and service provision, would be unchanged.
Yesterday, Home REIT’s shares were suspended by the London Stock Exchange at its own request, as the company undergoes an “enhanced” audit following high-profile criticism from a short-seller.
The company previously said its 2022 results would be delayed due to auditor BDO carrying out “an enhanced set of audit procedures”. Under Financial Conduct Authority rules, a company must publish its annual financial report within four months of the end of its financial year, meaning Home REIT has missed the 31 December deadline.
Home REIT said: “The company intends to request a restoration of the listing of its ordinary shares upon publication of the 2022 results, which the company expects to be published by as soon as practicable.” It said last month that it expected the results now to be published by the end of January.
Viceroy Research has levelled a number of accusations at Home REIT over its tenant base and the valuation of its real estate portfolio, all of which Home REIT has refuted. The company’s shares have lost around 70% of their value over the past year and it exited the FTSE 250 last month.
Home REIT said yesterday: “While the company awaits the completion of BDO’s enhanced audit procedures, the company will continue with the previously announced steps to maintain and enhance shareholder confidence, while maintaining its ordinary course operations to provide high-quality housing for some of the most vulnerable people in society.”
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