Home REIT PLC Transfer of sub-leases (1309K)
August 23 2023 - 1:00AM
UK Regulatory
TIDMHOME
RNS Number : 1309K
Home REIT PLC
23 August 2023
FOR IMMEDIATE RELEASE
23 August 2023
Home REIT plc
("Home REIT" or the "Company")
Transfer of sub-leases
The Company announces that One (Housing & Support) CIC ("One
CIC") has agreed to surrender its leases on 100 properties
comprising a total of 418 beds (the "Properties").
Mears Limited, guaranteed by Mears Group PLC, the housing and
social care provider, has been occupying the Properties on a
sub-lease from One CIC. These sub-leases will now transfer to Home
REIT, with Mears Limited becoming a direct tenant for the remaining
lease term of c.6.6 years with an initial contracted rental income
of GBP891,155 per annum.
The surrender agreement allows the Company to receive a
sustainable income stream from a strong tenant covenant and is
expected to generate significantly higher rent collection than has
previously been received from One CIC in relation to the
Properties, despite a lower headline rent (previously GBP1,227,405
per annum).
The Company continues to work constructively with One CIC to
find sustainable solutions for the other 234 properties it
currently rents from Home REIT. This transaction reduces the
Company's exposure to One CIC from 13.5% to 9.5% by number of
properties and 14.2% to 11.9% by contracted rent roll (as at 31
July).
The transaction is in line with AEW's strategy as Investment
Manager to stabilise the Company's portfolio. The current occupiers
of the Properties will not be impacted as a result of this
transaction.
The person responsible for arranging the release of this
announcement on behalf of the Company is FTI Consulting.
FOR FURTHER INFORMATION, PLEASE CONTACT:
FTI Consulting (Communications HomeREIT@fticonsulting.com
Adviser) +44 (0)20 3727 1000
Dido Laurimore
Eve Kirmatzis
Ellie Perham-Marchant
Oliver Harrison
The Company's LEI is: 213800A53AOVH3FCGG44.
For more information, please visit the Company's website:
www.homereituk.com
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END
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