Legal proceedings have begun between Home Reit (HOME ), its former fund manager and some investors in the property fund whose shares have been suspended for 16 months over an over-valuation scandal.  

Home said ths morning it had issued a comprehensive response to a pre-action letter of claim received from legal firn Harcus Parker on behalf of some of its shareholders. 

The letter of claim alleges that Home Reit and misled and lied to investors on the true condition of the properties bought to provide accommodation for the homeless.  

In a statement Home said: ‘The company intends vigorously to defend itself in respect of the threatened litigation and has denied the allegations made against it.’

Meanwhile Home has issued pre-action letters of claim to Alvarium Fund Managers (UK) Limited and AlTi Re Limited, its former investment adviser’s appointed representative, over their alleged mismanagement of the trust launched in October 2020.

Home intends to issue further pre-action correspondence in due course but said it could not comment further.