Business
Transfer of sub-leases
Transfer of sub-leases.
About this update from Home Reit Plc
[{"type":"text","content":"\n\nFOR IMMEDIATE RELEASE\n \n23 August 2023\nHome REIT plc\n \n(\"Home REIT\" or the \"Company\")\n \nTransfer of sub-leases\nThe 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\").\n \nMears 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.\n \nThe 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).\n \nThe 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).\n \nThe 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.\n \nThe person responsible for arranging the release of this announcement on behalf of the Company is FTI Consulting.\n \n \nFOR FURTHER INFORMATION, PLEASE CONTACT:\n \n\n\n\nFTI Consulting (Communications Adviser)\nDido Laurimore\nEve Kirmatzis\nEllie Perham-Marchant\nOliver Harrison\n\n\[email protected]\n+44 (0)20 3727 1000 \n\n\n\n \nThe Company's LEI is: 213800A53AOVH3FCGG44.\n \nFor more information, please visit the Company's website: www.homereituk.com\n \n \n\n","length":4467,"tagName":"div"}]