Negotiations to secure properties led by Joint Administrators from CBW Recovery LLP
Agreement follows social housing operator Circle Housing and Support CIO entering administration in summer 2022
Vulnerable residents across south and northeast England will have their homes protected, following the success of negotiations led by CBW Recovery LLP (formerly Carter Backer Winter LLP).
The need for a resolution came about after Circle Housing and Support was placed into administration on 6 July 2022, after it was determined the charity would be unable to pay its ongoing liabilities. John Dickinson and Joseph Colley of CBW Recovery LLP were appointed Joint Administrators.
As a result, 450 tenants across 141 properties whose 20-year leases were originally entered into in 2020 – and whose future was under threat – will remain secure. From 25 November 2022, the leases have been assigned to One (Housing & Support) CIC. The deal struck by the administrators will also allow all creditors of the Charity to be repaid in full with statutory interest.
This significant result for vulnerable residents was achieved following extensive discussions between the Joint Administrators and head landlord of the social housing, Home REIT plc.
The charitable incorporated organisation Circle Housing and Support had been operating since 2009 and was awarded charity status in August 2021. Its mission was to offer housing-related support for vulnerable people, including homeless people and asylum seekers.
John Dickinson, Head of Transactional Services and Corporate Restructuring and Insolvency Partner at CBW Recovery LLP, said:
“Given the vulnerable nature of the residents involved and the level of support required, we are delighted to have delivered a successful outcome for the tenants and the Charity’s other stakeholders, in what was an urgent and sensitive situation. Our goal was always to achieve the best possible outcome for everyone involved, and we would like to thank Home REIT and our solicitors, Birkett Long LLP, for their efforts and assistance in securing the assignment of the leases.”
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