Home REIT PLC on Wednesday explained that two of its tenants have entered into creditors’ voluntary liquidation, allowing it the chance to re-tenant the properties or to carry out other asset management initiatives as soon as possible.

The two tenants are Redemption Project CIC and Serenity Support CIC. Redemption is a tenant of 152 properties in the company’s portfolio, making up 11% of rent demanded in June. Serenity makes up 1% of rent demanded in June.

Both of these tenants are non-performing, Home REIT explained, meaning that the creditor’s voluntary liquidation allows for it to re-tenant the properties or to carry out other asset management initiatives.

Home REIT said it is currently working with the tenants’ respective liquidators to ensure a smooth handover in an attempt to minimise any potential disruption to underlying occupants and to stabilise the portfolios going forwards.

It added that discussions with other prospective tenants to take on new leases on the properties have already begun.

‘It should be noted that whilst discussions with prospective tenants are ongoing, arrangements are being made for existing care and support services for the underlying residents to continue,’ the company said.

Home REIT is a London-based property investor focused on accommodation for homeless people.

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.

Shares in the firm are suspended from trading in London as the company failed to publish its annual financial report for the year ended August 31 in time.

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