Home REIT is to part ways with its investment adviser as it extends the deadline for its bidder to make a firm offer.
This morning the REIT confirmed that Bluestar Group will be given a further four weeks to make an offer. The deadline was originally 5pm today. It will now have to “put up or shut up” by 5pm on 13 April.
Some investors have raised concerns that the “unsolicited approach” by Bluestar, which has strong links to Alvarium, which set up Home REIT, may simply be a “shield” to allow Home REIT time to manoeuvre. That fear will not have been assuaged by the update this morning: “This revised deadline may be extended further, at the request of the board of Home REIT and with the consent of the takeover panel.”
Yesterday’s announcement, titled an “Update of Review of Strategic Options”, confirmed that the board would find a replacement for its investment adviser, Alvarium Home REIT Advisors.
It said: “Following consultation with a range of shareholders, the board is considering all its options for the ongoing management of the company’s assets, and, consequently, is initiating a process to consider candidates to act as investment adviser.
“Discussions have commenced with a number of candidates and the process will be concluded as soon as is practicable. Alvarium Home REIT Advisors Limited continues to work closely with the board and its advisers and will work towards an orderly handover at the appropriate time.”
The statement added: “The Company is considering whether material changes to its Investment Policy are necessary or advisable at this stage to continue as a listed company. Any such changes would require the approval of the FCA and shareholders under the Listing Rules. Any proposals, if recommended, will be put forward to shareholders in due course.”
The REIT added that it was “in close contact with Scottish Widows, the group’s main lender”, to which it owes £250m. The statement added that Home REIT was “grateful for its support to date”.
There is still no sign of the company’s accounts for the year ending 31 August 2022, which were due to be published in November.
While the REIT attempted to minimise the importance of this, one shareholder said that the fact that BDO was still not able to sign off the accounts was “chilling”.
Jennifer Morrissey, partner at Harcus Parker, which has launched a group action against the REIT on behalf of shareholders, said: “The market update is totally unsatisfactory, since an intention to explore amendments to the investment policy and potentially engage a new Investment adviser bypasses the question of accountability as to the viability and execution of the existing policy by those who were responsible. No clarity has been given, and either Alvarium seem to be trying to wash their hands of Home REIT or Home REIT of Alvarium.”
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