Troubled real estate investment trust, Home Reit, has faced another setback as it revealed a request for re-financing has been rejected.
As of May 2024, the trust had total borrowings of more than £131mn.
It had planned to reduce this significantly through a refinancing process to find other options.
Michael O'Donnell, non-executive chairman of Home Reit, said: "Whilst the stabilisation strategy adopted in August 2023 has progressed from an operational perspective, re-financing of the debt was a key component of its continued advancement.
"As a re-financing has not been possible, the board is considering a number of options both to re-pay the outstanding debt and provide an optimised resolution for shareholders, which may include a more extensive realisation strategy."
The update said after recent property sales, which haven't yet completed, the company's total borrowings are expected to reduce to around £104.8mn.
A year ago, Home Reit appointed investment manager AEW, which is understood to be working on stabilising the portfolio and pursuing legal action.
Since August last year, the investment trust has sold off hundreds of properties to reduce its debts and in February this year, the FCA launched an investigation into the trust.
Its portfolio currently consists of 1,765 properties with a value of £314.1mn.
tara.o'connor@ft.com
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