Home Reit (HOME) has exchanged legal contracts for the sale of 706 properties representing the majority of its assets to Patron Capital for £123m. 

The disgraced social housing trust, which continues to progress its wind-down amid a major fraud investigation, is finalising the disposal process initiated under an exclusivity agreement back in November.

European private equity firm Patron has paid a £12.3m cash deposit upon the exchange of contracts. The remainder of the £123m consideration will be received in two tranches: an £85.7m payment on completion and a further £25m  to be received 12 months later. 

The deal is set to complete by 1 April 2026 and deferred sum is ‘not subject to any conditions’, being secured by a bank guarantee.

The trust’s remaining properties were valued at just £17.35m as of 31 August 2025, with the sales process for the majority of these expected to conclude in the first half of this year.

While the disposal is now a legal certainty, however, whether shareholders will actually receive any of the proceeds is less clear.

Though it remains the board’s  ‘aspiration’ that capital will be returned to shareholders upon completion of the realisation strategy, the trust echoed caution issued in full year results last week, warning that the ‘timing and quantum’ of such distributions remain ‘highly uncertain’. 

‘The ability of the company to make any distribution continues to be constrained while it faces potential group litigation or other claims,’ it said, adding the board is currently working with advisers to determine an appropriate mechanism and timing for any return of capital.

Chair Michael O’Donnell said: ‘The board is committed to securing the best possible result for shareholders, and after an exhaustive process, we are pleased to have exchanged on a transaction which we believe is in their best interests. For the company as a whole there remain further hurdles to cross, however, the transaction represents an important milestone.’

The trust is expected to file interims in the first quarter of 2026. It will subsequently apply to the Financial Conduct Authority (FCA) for a restoration of its listing in an attempt to restart trading and provide liquidity to trapped investors.