The Serious Fraud Office (SFO) has today conducted a major
operation involving raids and arrests, as it announces a new
bribery and fraud investigation into the past management of Home
REIT, a listed UK social housing company. The suspected offending
has an estimated value of £300 million.
SFO investigators carried out searches and made arrests at homes
in Altrincham, Maidenhead and London – a commercial site in
Manchester has also been searched. Assistance was provided by the
National Crime Agency.
Home REIT, listed on the London Stock Exchange in 2020, sold
investment in its leasing of thousands of homes across the UK,
raising more than £850 million in its first three years of
trading.
Investors were told that their money would be used 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.
In November 2022 an investor report into Home REIT raised
multiple concerns about the company including the valuation of
its properties and the ability of its tenants to pay rent. It
suspended trading on the London Stock Exchange in January 2023.
Assisted by the SFO, Italy's Guardia di Finanza also carried out
a search of a home in Venice.
Emma Luxton, Director of Operations at the Serious Fraud
Office (SFO), said:
This company had a meteoric rise, spending millions on properties
that were supposed to house the most vulnerable in society and
provide returns for investors.
Its chaotic downfall has left many with unanswered questions.
Today we conducted a major operation to advance our inquiries
into suspected bribery and fraud.
Solicitor General MP said:
The allegations in this case are deeply serious. Vulnerable
people, including rough sleepers and veterans, were promised
homes, while investors who funded millions of pounds were
promised returns. Both groups deserve answers.
Fraud is a devastating crime harming people and damaging business
confidence. I fully support the Serious Fraud Office's fraud and
bribery investigation, working with enforcement partners – at
home and abroad.
