Homeless accommodation landlord Home Reit (HOME) is facing a potential legal challenge from commercial litigation firm Harcus Parker over allegations it misled investors.
The litigator is seeking compensation on behalf of investors in the company who believe that Home Reit has overvalued its assets and does not provide the high-quality standard of homeless accommodation it has claimed.
Harcus Parker’s letter references concerns raised by investor The Boatman Capital Research earlier this week and short seller Viceroy Capital last month.
The letter also echoes concerns raised by an Investors’ Chronicle investigation from August regarding the companies to which Home Reit lets its assets to provide care for the vulnerable people living in its buildings.
Jenny Morrissey, partner at Harcus Parker, said: “Companies that are profiteering from the social housing crisis at the expense of the vulnerable and homeless should be held to account.
She added: “What we have seen is troubling for its investors, particularly as many of them chose to buy shares in Home Reit because its stated purpose and vision are that it wishes to contribute to the alleviation of homelessness in the UK.”
Home Reit has been approached for comment. Its shares fell a further 2 per cent following the publication of the claim.
