(Reuters) -Britain’s Home REIT, a housing provider for the homeless, said on Thursday it was reviewing all options to recover unpaid quarterly rent due since November from two tenant firms.
Home REIT has been under scrutiny over the last few months after a short seller report by Viceroy Research, best known for raising the alarm on Germany’s Wirecard. Home REIT has missed a deadline to publish its annual results and trading in the firm’s shares has been suspended since Jan 3.
Home REIT said Big Help Group – its largest tenant – and Noble Tree Foundation had not paid rent contractually for the quarter to Nov. 30, and the company was looking at options to obtain payment.
Big Help Group’s CEO Peter Mitchell said no rent was due because it had agreed with the housing provider for a rent-free period of two years starting on Sept. 1, 2022.
“Big Help will actively defend any suggestion of rent owed and does not rule out taking actions against Home REIT for breach of contract,” he said in an emailed statement to Reuters.
Home REIT did not immediately respond to request for comment on Big Help’s statement.
Big Help also paid all pending dues at the time of the agreement for the rent-free period, the company added.
Noble Tree Foundation did not immediately respond to Reuters’ requests for a comment.
Viceroy’s report in November raised questions about a range of issues, including the ability of Home REIT’s tenants to pay rent and the valuation of its properties. The company dismissed those questions, and other allegations.
“Home have, in fact, had difficulties collecting rent since at least March 2022 from their largest tenant,” said Viceroy spokesperson Gabriel Bernarde in an emailed statement to Reuters.
Home REIT said it had no overdue arrears in relation to amounts billed on Aug. 31, 2022.
Home REIT said it was also in the process of appointing a specialist supported housing property manager to help the existing management team with tenant liaison and rent collection, among other tasks.
(Reporting by Sinchita Mitra and Hani Kollathodi in Bengaluru; Editing by Shailesh Kuber and Mark Potter)