Home REIT shareholders left in limbo as legal troubles threaten capital returns

At the mercy of potential litigation

News of a proposed wind-down for the troubled investment trust Home REIT has brought shareholders closer to an exit after a turbulent two years, but legal troubles may hinder the prospect of capital returns.

The decision unveiled today (16 July), which has been backed by the former FTSE 250 trust's key shareholders, comes after last month's news that the board had failed to secure a refinancing of its existing debt facility on acceptable terms. Total borrowings, which the lender Scottish Widows has demanded to be repaid by the end of this year, were reduced from £220m to £114.6m by the end of June and are expected to fall to £90.1m once recent sale proceeds are received. Problems getting in the way of investment adviser AEW's turnaround strategy stem from a high cost base, the need for si...