'The circle is collapsing': How a demolished house in Lancashire uncovered Home REIT's broken business model

Due diligence concerns

Valeria Martinez
clock • 14 min read

A partly demolished terraced house in a seaside town in Lancashire has lifted the curtain on Home REIT and its investment adviser Alvarium Fund Managers’ poor due diligence efforts and laid bare a business model that is breaking down.

In October 2020, Home REIT went to the market with an enticing proposal: the first real estate investment trust focused solely on reducing homelessness. Its investment objective was to deliver "genuine" social impact while offering investors a net total shareholder return of at least 7.5% per annum and an annual dividend yield target of 5.5% at launch, with the potential to grow.  Since IPO, the former FTSE 250 trust has raised over £850m in equity, which it has deployed in a portfolio of more than 2,400 properties and 11,700 beds, including housing for women fleeing domestic violence...

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