LONDON - Home REIT, a UK-based real estate investment trust, has announced the successful exchange on the sale of 152 properties at public auctions held on October 21 and 22. The sales generated gross proceeds of £26.8 million, which equates to 11.0% of the Company's portfolio value, based on a draft valuation by JLL from February 2024.
The Company's board expressed satisfaction with the outcome, noting that the proceeds from the October auctions are expected to be sufficient to fully repay the outstanding loan from Scottish Widows. The remaining loan amount stood at £72.0 million as of September 30, 2024. Home REIT anticipates settling the debt before the year's end.
Since August 2023, the Company has completed the sale of 1,229 properties and has exchanged contracts on an additional 415 properties. The cumulative gross proceeds from these transactions amount to £243.3 million. According to the Company, this figure aligns with the draft valuations provided by JLL in August 2023 and February 2024.
This series of sales and the subsequent debt repayment are part of Home REIT's broader financial strategy. The move is expected to strengthen the Company's balance sheet by eliminating the outstanding loan and is indicative of the Company's proactive asset management and capital allocation efforts.
The information for this report is based on a press release statement by Home REIT.
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