Home REIT, the housing provider for the homeless, has disposed of 117 properties through a public auction on Valentine’s Day, incurring losses in the process. The company managed to gather gross proceeds of £5.6 million from the sale, which accounts for 1.4 per cent of its portfolio by value.

The auction’s proceeds stood at £1.02 million less than the properties’ draft values as of August 2023, showing a 15.5 per cent deficit. Home REIT noted that the properties sold were generally smaller than the average size in its portfolio, which might explain the significant variance between the sale price and the previous valuation.

The funds raised from this auction are earmarked for reducing the company’s borrowings and bolstering its working capital. Furthermore, Home REIT announced plans for another property to be auctioned, indicating a continuation in the sale of assets. The outcomes of these auctions will be detailed in the company’s forthcoming monthly update.

Originally, Home REIT positioned itself as an investment vehicle aimed at providing housing for vulnerable populations, including the homeless. It leased properties to charities and other organizations, which in turn, funded the rent through government housing benefits. However, the firm now faces a critical period of reassessment and restructuring to address the issues uncovered by the investigation and restore stakeholder confidence.