REG - Home REIT PLC - Transfer of sub-leases

Home ReitAnnouncement

23/08/2023 07:15

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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 £891,155 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
£1,227,405 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 Adviser)  HomeREIT@fticonsulting.com

 Dido Laurimore                           +44 (0)20 3727 1000

 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
(http://www.homereituk.com/)

 

 

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