Troubled real estate investment trust Home Reit has made £26.5mn from selling off a further 226 properties this week.
The firm sold the properties at auctions over the past three days, it said in a trading update today (August 2).
It said the gross proceeds were 8.1 per cent below the draft valuation of August 2023.
However, it added: "The majority of the properties sold are below portfolio average lot size which may cause a greater percentage variation when comparing sale price to the August draft valuation."
It comes as it works to reduce its debt and prepares to wind down.
In July, the board said a managed wind down of the company would be in the best interests of shareholders amid "extensive challenges" including spiralling debts, litigation action, and an investigation by the regulator.
This came after a trading update in December 2023 showed the company's property portfolio was worth less than half of the £977mn it had paid for the assets and a large proportion of the portfolio was in the private rented sector, which went against the stated investment strategy of providing homes for vulnerable people, including the homeless.
As of June 30, it had managed to reduce its debts from £220mn to £114.6mn.
As part of the wind down it is expected to continue selling off properties in order to settle its debt with lender Scottish Widows.
The latest update said in the past year Home Reit has completed the sale of 914 properties and exchanged on a further 287.
The gross proceeds from this stands at £163.1mn, in line with August 2023's draft valuation.
The Financial Conduct Authority had launched an investigation into the trust covering the period between September 2020 and January 2023 in February.
The company previously said while this investigation, and potential litigation, takes place the ability to make payments to shareholders would be limited.
tara.o'connor@ft.com
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