Home REIT faces boardroom coup as it plunges deeper into crisis

Troubled Home REIT faces a boardroom coup and a string of lawsuits as it plunges deeper into crisis

Angry shareholders have turned to short-seller Fraser Perring – whose firm Viceroy Research published a damning report into the landlord for the homeless in November – as a possible saviour.

In a dramatic development that piles pressure on Home REIT bosses, Perring said he has been approached by investors who want him to take charge of the company and turn it around.

Saviour? Angry Home REIT shareholders have turned to short-seller Fraser Perring (pictured), boss of Viceroy Research

‘I would consider taking it on if they gave me free rein,’ he told the Mail.

‘If investors are reaching out to a short-seller, it truly shows the level of distrust in the current management.’

Moves to install Perring came as the firm endured a frosty annual general meeting with investors in London yesterday.

As well as agitating for change at the top, shareholders are preparing to sue Home REIT as trust in the existing board evaporates in the face of a mounting series of crises. 

The company is locked in disputes with several major tenants who have withheld payments in protest against the conditions of some of the properties.

Trading in its shares has been suspended since the start of the year after the firm failed to publish results on time. Meanwhile, a forensic accountant has been brought in to investigate allegations of bribery.

Perring did not attend yesterday’s AGM, blaming ‘train delays’, although two representatives from Viceroy were present.

The 49-year-old told the Mail several unhappy investors, including a large shareholder, have contacted him with plans to file lawsuits against both Home REIT’s management and wealth manager Alvarium, which set the company up in 2020.

Others were pushing for Perring and his associates to take over the running of Home REIT and turn it around, although it is understood no timeline has been set.

The threat of lawsuits and coups is another headache for Home REIT as law firm Harcus Parker looks to recruit disgruntled investors for its own claim against the group.

Demolished: Our report from last week revealed how Home REIT has been accused of misleading shareholders

Nearly 80 per cent of Home REIT’s shares are held by institutions, meaning some big names could be behind moves to protect their cash or salvage the business.

The terse and chaotic AGM saw several analysts and investor representatives almost turned away due to confusion over required shareholder documents. In a controversial move, the media was also barred from attending.

No resolutions were put to a vote at the meeting, due to there being no accounts, and shareholders were left none the wiser about the state of the business.

In text messages seen by the Mail, one investor said they had ‘never heard so much s**t in my life’.

Amid the growing sense of chaos, a suitor last week entered the fray with a takeover swoop that could rescue the firm.

London-based investment firm Blue Star Capital made an unsolicited offer for the firm.

Its bid vehicle, Bluestar Group Limited, is controlled by director Benoit Gotlieb, who is involved in running Bluestar Advisors, which is part-owned by Alvarium, the investment firm that originally set up Home REIT.

An investor leaving the AGM seemed uninterested in the possibility of a takeover, saying Bluestar’s swoop was being used as a ‘shield’ by Home REIT to avoid answering uncomfortable questions about the company’s situation.

‘I think what investors want is for them to hurry up and sort it out,’ they said.