Home Reit tenant Noble Tree enters administration

4th Jun 2024 12:31

(Sharecast News) - Troubled real estate investment trust Home Reit said on Tuesday that homelessness charity Noble Tree Foundation - a tenant of 143 properties in its portfolio - has entered into administration.

Noble Tree represented around 7% of rent demanded in April, Home Reit noted.

Last February, Noble Tree's chief executive Matt Fearnley told the Guardian the charity owed Home Reit nearly £1m. He said the group was withholding rent as Home Reit owed millions to cover repairs and insurance.

On 2 October 2023, the Charity Commission launched a statutory inquiry into Noble Tree.

Home Reit said on Tuesday: "The company and AEW are working closely with the appointed administrator, CBW Recovery LLP, to arrange the surrender of Noble Tree's leases and a comprehensive handover of its tenancies. Underlying residents of the properties will not be impacted by the surrender of Noble Tree's tenancies."

AEW is Home Reit's investment manager.

The occupied properties leased by Noble Tree are let to private rented sector (PRS) tenants on Assured Shorthold Tenancies (ASTs).

"Following the surrender of Noble Tree's leases, the tenancies will transfer to Home Reit," it said. "This will enable the company to collect underlying income from the properties, increasing rent collection and facilitating other asset management activities."

Home Reit said it will either re-let the properties to a social use provider or appoint a property manager, who will be responsible for the day-to-day management and rent collection.