Acquisition

RNS Number : 2665U

Civitas Social Housing PLC

23 October 2017

 

23 October 2017

CIVITAS SOCIAL HOUSING PLC

("Civitas" or the "Company")

£3.1 Acquisition of a Portfolio of Specialist Supported Living Properties

The Board of Civitas Social Housing PLC is pleased to announce the Company has completed the purchase of a portfolio of specialist supported living properties for a total consideration of £3,055,000, comprising the freehold interest in 18 properties and leasehold interest in 1 property, with 30 tenancies, in the West Midlands. The portfolio is immediately income generating with an initial net yield in line with the Company's expectations and was sourced off-market by Civitas Housing Advisors Limited, the Company's Investment Manager.

Each property is subject to a 22-year lease with a specialist Housing Association - Inclusion Housing CIC ("Inclusion") - focused around specialist supported living, with rents established by the relevant local authority and adjusted annually in line with CPI over the full period. Inclusion is a Registered Provider, regulated by the Homes and Communities Agency and a counterparty to leases within the Company's previous portfolios.

The portfolio was funded through the Company's cash resources. In due course, it is intended that leverage will be applied in accordance with the Company's stated policy and it is expected that this will further enhance the yield achieved from this investment.

Civitas targets the objective of delivering sustainable returns to its shareholders by making socially relevant investments within the regulated social housing sector in England and Wales.

For further information, please contact:

Civitas Housing Advisors Limited

Paul Bridge Tel: [phone]

Andrew Dawber Tel: [phone]

Cenkos Securities PLC

Sapna Shah Tel: [phone]

Tom Scrivens Tel: [phone]

Pagefield

Philip Dennis Tel: [phone]

David Leslie Tel: [phone]

Notes: Civitas Social Housing PLC is the first Real Estate Investment Trust offering pure play exposure to social housing in England and Wales. The Company is managed by Civitas Housing Advisors Limited. The Company is listed on the premium listing segment of the Official List of the Financial Conduct Authority and was admitted to trading on the main market for listed securities of the London Stock Exchange in November 2016.

 

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