Triple Point Social Housing lessee hit with enforcement notice
Updated : 12:27
Triple Point Social Housing updated the market in response to an enforcement notice issued by the Regulator of Social Housing on Friday, to one of its registered providers, Auckland Home Solutions.
The London-listed real estate investment trust said Auckland manages fewer than 1,000 supported housing units, with the enforcement notice coming after a regulatory notice issued in August 2021.
It said the regulator expressed concerns that Auckland might not be compliant with its standards, and directed the provider to commission an independent review of governance, risk management, business planning and compliance with the Rent Standard.
Auckland would also be required to submit an action plan to achieve compliance once the review was complete.
The regulator also appointed three new board members to improve Auckland's capacity and capability.
Auckland represents 4.6% of Triple Point’s portfolio value, and 4.6% of its rent roll.
As at 31 December, all rent due from Auckland had been paid in full, Triple point confirmed.
However, by 31 March, a small amount of rent outstanding, worth £41,064, was yet to be paid, but the board said it expected the matter to be resolved shortly.
Triple Point Social Housing has 30 assets leased to Auckland, worth a total of £30.8m as at 31 December.
The company said it would continue to monitor the situation closely, and work with Auckland to ensure compliance with the regulator's standards.
“The group's investment manager, Triple Point Investment Management, has an established relationship with Auckland and welcomes the additional skills the new directors will bring to Auckland's board,” the company’s directors said in their statement.
“The manager notes that Auckland has been working towards addressing the matters raised by the regulator in August 2021, and has already begun the commissioning process for the independent review required by the regulator.”
At 1227 BST, shares in Triple Point Social Housing REIT were down 2.64% at 49.65p.
Reporting by Josh White for Sharecast.com.