LONDON: The UK’s Serious Fraud Office (SFO) has arrested six individuals as part of an ongoing investigation into suspected fraud and bribery involving the former management of social housing investment firm Home REIT, in a case estimated to involve up to £300 million.

The arrests followed coordinated raids at six locations across the UK, including London, Altrincham, Maidenhead and Manchester. The individuals — five men and one woman aged between 40 and 80 — were detained on suspicion of fraud and bribery offences.

Home REIT, which suspended trading on the London Stock Exchange in January 2023, had raised approximately £850 million from investors over a three-year period. According to the SFO, investors were told their funds would be used to acquire and refurbish properties to be leased to publicly funded charities and housing providers supporting rough sleepers, veterans and individuals recovering from addiction.

The SFO said rental income from these properties was expected to generate returns for investors.

Speaking after one of the raids in north London, Andy Parratt, deputy head of the SFO’s fraud and bribery division, said the investigation carried significant social implications.

“This investigation affects some of the most vulnerable people in society,” Parratt said, adding that more than 150 SFO staff were involved in the operation. “We are still at an early stage, but we are working to establish what occurred in the management of Home REIT and the circumstances that led to its collapse.”

Home REIT specialised in supported housing, providing accommodation through self-contained flats and houses of multiple occupancy. In a 2021 report, the company said it worked with 17 not-for-profit housing partners and provided homes to more than 3,000 individuals.

Concerns surrounding the group emerged in late 2022, when an investor report questioned the valuation of its property portfolio and the financial capacity of tenants to meet rental obligations, according to the SFO.

Solicitor General Ellie Reeves said both vulnerable beneficiaries and investors deserved clarity.

“Rough sleepers, veterans and others were promised stable housing, while investors were assured returns on substantial capital,” she said. “Both groups are entitled to answers.”

Emma Luxton, director of operations at the SFO, said the case reflected a dramatic rise and collapse.

“Home REIT experienced rapid growth, spending hundreds of millions on properties intended to support vulnerable groups and deliver investor returns,” she said. “Its abrupt and disorderly downfall has left serious questions unanswered.”

In a statement, Home REIT’s current management said the company was aware of the SFO’s actions and would cooperate fully with the investigation.