Shareholders in scandal-torn homelessness firm Home REIT launch High Court compensation bid over alleged misleading statements

Over 800 shareholders of the scandal-ridden property firm Home REIT have filed High Court claims against the company and its directors, seeking compensation for losses they suffered due to misleading statements and omissions. The investors are accusing Home REIT of presenting a false picture of its rental income security, tenant experience, and property portfolio valuation.

The allegations stem from the firm's narrative that differed significantly from reality, impacting investors' decisions to invest in the company. Home REIT, a London-listed social housing company, raised over £850 million from investors over its first three years, promising to use capital to acquire accommodation for vulnerable people while generating rental income returns.

The claimants argue that the company's management misled them regarding the security of its income, the financial strength of its tenants, its social impact, and the acquisition and valuation of its property portfolio. Following a series of crises since late 2022, Home REIT has been embroiled in controversy, with a short seller exposing concerns about its tenant makeup, City AM reporting on the bankruptcy of major tenants, and the UK's top financial crime unit launching an investigation into potential fraud and bribery.

The Serious Fraud Office conducted raids and arrests earlier this year, uncovering potential losses amounting to £300 million. Despite the mounting challenges, Home REIT continues to operate with its four subsidiaries now in liquidation, leaving many investors to question the truth behind the firm's initial promises and seeking redress for their losses.