Troubled Home REIT PLC on Tuesday announced it has agreed for AEW UK Investment Management LLP to become its property adviser with immediate effect.

The London-based property investor focused on accommodation for homeless people said AEW later also will become its investment manager and alternative investment fund manager.

The additional changes will occur once Alvarium Fund Mangers UK Ltd is no longer acting as the firm’s AIFM and Alvarium Home REIT Advisors Ltd is no longer its investment adviser.

The former FTSE 250-listing has been rocked by scandals over recent months, including tenants withholding rent or going bust, allegations of misleading shareholders, and finding itself in the cross-hairs of a short-seller last November.

Home REIT will need to receive approval from the UK Financial Conduct Authority for AEW to take on these roles, as well as the sign-off for a revised investment policy.

‘AEW’s selection follows a competitive process in which the board received a total of seven proposals and conducted detailed discussions and negotiations with three short-listed parties,’ the firm said.

AEW was selected for its expertise in property, which includes managing residential for rent, and managing listed funds, the company said.

Home REIT also cites its ‘immediately available resource, the strength of its network in the real estate marketplace, and its experience in taking on investment management mandates, amongst other factors’.

It had first announced it was considering changing investment adviser back in March, and by early April, it had received six proposals.

On Tuesday, Home REIT said AEW will prioritise undertaking a ‘thorough’ review of its assets, in order to create a longer-term strategy for its portfolio.

AEW will also take on the preparation for a potential sale of some properties, and engaging with tenants over issues with their properties, as well as other short-term requirements.

Home REIT is planning to write to shareholders to outline the proposed changes to its investment policy. These will include allowing the company to enter into shorter-term leases with tenants.

The trust also updated on its recent rent collection. In the five months to April 30, it collected just £3.4 million of the £25.9 million demanded.

The performance over the period was even worse than in the quarter ending November, when only £3.4 million of its £14.8 million quarterly rent roll had been paid.

‘Following the appointment of AEW, the board intends to proceed with the sale in the near term of a number of properties, as the company works to stabilise its property portfolio, provide additional liquidity and reduce its borrowings,’ Home REIT said.

Home REIT’s shares remain suspended from trading in London, after it failed to publish its annual financial report for the year ended August 31 in time. The company had blamed the issues on its independent auditor, BDO LLP.

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