Home REIT: UK social housing firm faces $404 million fraud, bribery probe

UK’s Serious Fraud Office has arrested six people in an estimated 300 million pound ($404 million) bribery and fraud investigation into the former management of social housing group Home REIT, it said on Wednesday.

Home REIT, which listed on the London Stock Exchange in 2020, spent millions on properties across the UK that were supposed to house vulnerable people. It raised more than 850 million pounds in its first three years of trading.

Investors were told their funds would help to buy and restore properties that would be block-let to publicly funded charities and community interest companies to house rough sleepers, veterans and people struggling with addiction. Returns would be generated to investors from rent payments.

But an investor report in November 2022 raised concerns about the valuation of the properties and the ability of the tenants to pay rent. The company suspended trading in January 2023.

“Its  chaotic downfall has left many with unanswered questions,” said Emma Luxton, the SFO’s director of operations. “Today we conducted a major operation to advance our inquiries into suspected bribery and fraud.”

Seven sites were searched, including a home in Venice, Italy, the SFO said. No further details were immediately available.

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