Home Reit (HOME ) has made another distressed sale, diposing 137 properties at a 68% loss as its new investment manager AEW continues the urgent process of stabilising the portfolio of social housing.

At a public auction over the last week, the suspended trust sold properties acquired for homeless accommodation that were in poor condition, largely vacant and requiring significant investment for £22.8m. These accounted for 5.6% of assets.

Of the properties exchanged for sale, 100 were subject to leases with tenants in liquidation which will be surrendered befoe completion. 

The proceeds will be used to reduce borrowings and provide working capital as part of AEW’s strategy to stabilise the portfolio, having replaced Alvarium as fund manager in May. Shareholders formally approved the plans at the annual general meeting.

Home raised £4.8m last month in its first fire sale as 40 properties were sold at a 60% loss.

Peel Hunt analyst Markuz Jaffe said the firesale prices highlighted the difficulties facing AEW. ‘We note that the prices achieved are at a lower level versus purchase price paid when compared to the sales announced in early August (which averaged 39.4% of the purchase price) and question the impact this will have on leverage levels across the portfolio.’

Shares in Home were suspended in January after publication of its annual results was delayed by allegations of fraud and over-valuation of its properties.