Home Reit has revealed it intends to bring legal action against its former alternative investment fund manager, Alvarium Fund Managers, and former investment advisers.
In a trading update issued today (April 18) the real estate investment trust also said it intends to “vigorously defend” itself from threatened action from shareholders.
The investment trust has itself been served a pre-action letter of claim from law firm Harcus Parker.
The lawyers are bringing claims on behalf of investors in Home Reit who have suffered losses on their investments.
A statement read: “The claim contends that investors were provided with information about Home Reit which is untrue and misleading and, as a result of which, investors have suffered loss.”
In its trading update Home Reit denied the claims from Harcus Parker.
In addition it said it intends to bring legal action against parties it considered were responsible for wrongdoing
It said: “The company intends vigorously to defend itself in respect of the threatened litigation and has denied the allegations made against it.
“Further the company intends to bring legal proceedings against those parties it considers are responsible for wrongdoing.
“To that end, the company has itself recently issued pre-action letters of claim to Alvarium Fund Managers (UK) Limited (its former alternative investment fund manager) and AlTi RE Limited, its former investment adviser’s appointed representative. The company intends to issue further pre-action correspondence in due course.”
It added it was not able to comment further at this stage.
In February, the Financial Conduct Authority launched an investigation into the trust covering the period between September 22, 2020 and January 2023.
A trading update in December 2023 showed the company’s property portfolio was worth less than half of the £977mn it paid for them.
A portfolio valuation in August 2023, put the company’s 2,473 assets at £412.9mn, a 57.7 per cent reduction.
It came after a report from Viceroy Research claimed many of the trust’s tenants were not paying any rent and questioned the long-term viability of some of its tenants.
tara.o’connor@ft.com
What’s your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com