Business
Update on Re-financing
Update on Re-financing.
About this update from Home Reit Plc
[{"type":"text","content":"\n\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n \nHome REIT plc\n \n(\"Home REIT\" or the \"Company\")\n \nUpdate on Re-financing\n \nOn 5 February 2024, the Company announced that it had commenced a refinancing process to consider alternative finance options for the Company, as part of its stated stabilisation strategy. AEW UK Investment Management LLP (\"AEW\") and JLL Debt Advisory have conducted a comprehensive process on behalf of the Company, but the Board has now concluded that it will not be able to secure a re-financing of the existing facility with the Company's lender, Scottish Widows, on terms that it could recommend to shareholders, despite extensive and advanced discussions with a potential lender.\nAs highlighted in the Company's monthly announcements, the Board and AEW continue to engage with Scottish Widows, who have advised that their objective is for repayment of the loan balance in the short term. The Company will therefore be implementing a strategy to repay the outstanding borrowings in a timely manner, focused on further property sales. The Company anticipates ongoing support of Scottish Widows as it completes this repayment strategy.\n \nAs at 31 May 2024, the Company had total borrowings of £131.8m which will be further reduced by the proceeds of the most recent property sales, which have exchanged but are yet to complete, totalling approximately £27m, which would reduce total borrowings to approximately £104.8m\nIn conjunction with the strategy to repay the Company's debt, the Board together with AEW, continue to take action to stabilise the Company's property portfolio and financial position. As at the date of this announcement, the Company's property portfolio comprises of 1,765 properties with a value of £314.1m (based on JLL's August 2023 draft valuation). As a result of the stabilisation strategy progress to date, the Company has assumed direct control of 1,193 properties.\n \nMichael O'Donnell, Non-Executive Chairman of Home REIT, said:\n \n\"Whilst the stabilisation strategy adopted in August 2023 has progressed from an operational per...