Home REIT: Scandal-stricken firm extends ‘put up or shut up’ deadline for takeover
Scandal-stricken social housing investor Home REIT has further delayed a ‘put up or shut up’ deadline for a takeover today as it mulls a bid from potential suitor Bluestar.
In a statement this morning, the firm said discussions with Bluestar “remain ongoing” and a deadline for a firm offer had now been pushed back until 11th May.
The beleaguered former FTSE250 firm announced on the 16th February that it had received an unsolicited bid from Bluestar group, a firm with former ties to Home REIT’s now-ditched investment advisor Alvarium.
However, Home REIT has since launched an alternative rescue route to replace its former investment manager Alvarium, dubbed Project Harbour. Bids to replace Alvarium closed this month, with fund manager Atrato the frontrunner, City PM understands.
Home REIT said today it was still considering “all strategic options” and said it could request an extension of a sale deadline beyond the 11th May if required.
“Shareholders should note that there can be no certainty that an offer will ultimately be made for the Company, nor as to the terms on which any firm offer might be made,” Home REIT added.
“A further statement will be made as and when appropriate.”
The update comes as Home REIT scrambles to get back on a steadier footing following months of scandals.
A number of its major tenants have withheld rent from the firm or filing for insolvency, with biggest tenant Lotus collapsing last month.
A report from inspector Simpact said the firm’s dilapidated portfolio would require some £15-20m refurbishment while the firm had collected just 23 per cent of its total rent.
Shares in the company have been suspended since the beginning of the year after the firm failed to file its accounts before a regulatory deadline. The value of the firm had cratered by more than 50 per cent before shares were suspended.