Home REIT fails to refinance borrowing

Home REIT is unable to refinance its existing borrowing from Scottish Widows. The struggling company kicked off a refinancing process in February, led by AEW UK Investment Management and JLL’s debt advisory arm. It had borrowings of £131.8m as of the end of May. But it has now said it cannot refinance its existing facility “on terms that it could recommend to shareholders, despite extensive and advanced discussions with a potential lender”. Home REIT said Scottish Widows’ objective “is for repayment of the loan balance in the short term” and that it will focus on further property sales in order to achieve this, adding: “The company anticipates ongoing support of Scottish Widows as it completes this repayment strategy.” Chairman Michael O’Donnell said: “Whilst the stabilisation strategy adopted in August 2023 has progressed from an operational perspective, refinancing of the debt was a key component of its continued advancement. As a refinancing has not been possible, the board is considering a number of options both to repay the outstanding debt and provide an optimised resolution for shareholders, which may include a more extensive realisation strategy.”