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eleaguered property funding belief Dwelling REIT suffered one other blow as we speak after one in every of its greatest tenants went bust.
Redemption Mission, a tenant of 152 properties within the firm’s portfolio, had entered into voluntary liquidation, Dwelling REIT mentioned, one other tenant, Serenity Help, which occupied 10 properties, had additionally collapsed.
Collectively, the 2 companies made up 12% of Dwelling REIT’s lease demanded in June. Begbies Traynor and Cornerstone Enterprise Restoration had been appointed as liquidators.
Redemption Mission, a non-profit, was set as much as present lodging for tough sleepers, victims of home abuse, sexually exploited ladies and recovering drug addicts. It was registered as a Neighborhood Curiosity Firm (CIC), a company standing for companies which assist native communities. Serenity Help was additionally a CIC and was launched to assist these with psychological well being circumstances.
Dwelling REIT mentioned discussions with potential new tenants for the positioning have been already underway and it was “working with the respective liquidators to make sure a easy handover in an try and minimise any potential disruption to underlying occupants.”
Dwelling REIT has been beneath scrutiny over the previous few months after a short-seller report by Viceroy Analysis questioned the flexibility of its tenants to pay lease, amongst different points.
Dwelling REIT initially rebuffed these issues, describing them as “with out basis” however it has since admitted it “has seen a basic deterioration in its lease assortment place” with a number of of its shoppers failing to pay lease on time.
Buying and selling in its shares has been suspended since 3 January.
