The Serious Fraud Office (SFO) has arrested six people in connection with social housing company Home REIT, which leased properties to charities currently under investigation.
Yesterday, the SFO conducted raids on seven sites and announced a bribery and fraud investigation into the past management of Home REIT.
It arrested five men and one woman, who are in their 40s, 50s and 70s.
SFO said suspected offending in relation to its investigation had an estimated value of £300m.
Investigators made arrests at homes in Altrincham, Maidenhead and London and searched a commercial site in Manchester, with assistance provided by the National Crime Agency.
Assisted by the SFO, Italy’s Guardia di Finanza also carried out a search of a home in Venice.
The arrests come as Charity Commission investigations into charities Noble Tree Foundation and Big Help Project, which leased hundreds of properties from Home REIT, continue.
Homelessness charity Noble Tree Foundation entered administration in 2024 after refusing to pay rent to Home REIT over the alleged condition of its properties.
Also in 2024, anti-poverty charity Big Help Project surrendered the lease on more than 600 properties it was renting from Home REIT, around 30% of the firm’s portfolio.
Company winding down
Home REIT, listed on the London Stock Exchange in 2020, sold investments in its leasing of thousands of homes across the UK, raising more than £850m 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 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 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 before announcing its decision to wind down and sell most of its properties in November last year.
A spokesperson for Home REIT said the company would provide any assistance it is able to the SFO in pursuing its investigations.
