Home Reit tenant pushed to the brink as he struggles to get government-backed benefits approved
On the brink: Lotus Sanctuary has stopped paying rent to beleaguered homeless housing society Home Reit
One of the biggest tenants at beleaguered Home Reit homeless housing company is on the verge of collapse as it struggles to get government-backed benefits approved.
Lotus Sanctuary, which provides supported housing and accounts for around 12% of Home Reit’s rental income, has stopped paying the company.
Lotus boss Gurpaal Judge said his company had a ‘substantial debt’ of £2.7million and suffered from cash flow problems as it struggled to gain ‘exempt status’ approval from local authorities, revealed an email to staff seen by City AM.
Earlier this month it was reported that Big Help Group, a Liverpool charity which is Home Reit’s largest tenant, and London-based charity the Noble Tree Foundation, are “challenging their lease obligations” and made no lease payments for the three months to November 30.
Home Reit was again forced to postpone its annual results last week after its auditor asked for more time to complete work on the accounts.
