The potential bidder for beleaguered social housing investor Home REIT has slammed a “lack of engagement” from the firm as it called for a further extension to a deadline for any potential takeover.
In a statement last night, Bluestar advisors said that Home REIT had so far refused to request a further extension of the ‘put up or shut up’ deadline for a deal after already shifting back the deadline twice.
A potential period for a deal comes to a close at 5pm today after Bluestar tried to snap up the firm with an unsolicited bid in February.
City A.M. reported exclusively yesterday Home REIT was now pressing ahead with plans to replace its investment manager Alvarium with property investment giant AEW instead of a take-private sale.
However, the comments from Bluestar raise questions over how seriously Home REIT considered the bid from Bluestar and its reasons for extending the deadline.
In its statement last night, Bluestar said it had received little engagement from board chair Lynne Fennah since making the bid for the firm.
“In recent weeks, Bluestar has repeatedly attempted to meet with Home’s Chairperson and SSP in order to explore ways in which it might receive information and access in order to progress its due diligence,” the firm said.
“Bluestar has been disappointed to receive no meaningful engagement with the only meeting that Bluestar was able to schedule between Lynne Fennah, the Home Chairperson, SSP, Bluestar and Numis being cancelled by SSP on behalf of Home at short notice.”
Bluestar said it remains “highly motivated and enthusiastic” about the bid but has been “frustrated by the lack of engagement”, which has been “particularly pronounced in the last three weeks”.
The bid from Bluestar raised eyebrows in February when it was revealed that its founder had former ties to Home REIT’s investment managers Alvarium, which had overseen a breakdown in its property portfolio and rental income.
Bluestar said it had severed any relationship with Alvarium prior to making the bid. Home REIT did not immediately respond to request for comment.