Home REIT: Scandal-hit housing investor threatens to sue those ‘responsible for wrongdoing’

Embattled housing investor Home REIT has threatened to sue those it considers “responsible for wrongdoing” today as it comes under pressure from a Financial Conduct Authority probe launched last month.

The scandal-stricken former FTSE 250 firm, which has been battling to stabilise its property portfolio under investment manager AEW, said in a monthly update today that it intended to “bring legal proceedings” against certain parties – but declined to say who it would be targeting.

“The company cannot comment any further at this stage as to do so may prejudice the Company’s position in any potential proceedings,” Home REIT added in the statement. “Any relevant announcements in this regard will be made at the appropriate time.”

The plans come after the City watchdog launched a probe into the firm in February, some 18 months after short seller Viceroy Research sounded the alarm over the quality of its tenants and value of its housing.

Bosses have been scrambling to restore its rental income across its sprawling portfolio of social housing after the firm called in AEW as its investment manager last May.

Since then the firm has slashed the size of its property portfolio and offloaded scores of homes at cut values.

Home REIT said it had sold a further 28 properties today at a value of £5.7m but was still only collecting 11 per cent of total billed rent for the period.

Shares in the company have been suspended since January last year after the firm failed to publish its results ahead of a regulatory deadline.

In an update earlier this year, Home REIT said it plans to publish its accounts in the second quarter of this year.