Acquisition

RNS Number : 6468U

Civitas Social Housing PLC

25 October 2017

 

26 October 2017

CIVITAS SOCIAL HOUSING PLC

("Civitas" or the "Company")

£1.9 million Acquisition of a Specialist Supported Living Property

The Board of Civitas Social Housing PLC is pleased to announce the Company has completed the purchase of a specialist supported living property for a total consideration of £1,924,000, comprising the freehold interest in a new-build property with 12 tenancies. The properties are immediately income generating with an initial net yield in line with the Company's expectations and both were sourced off-market by Civitas Housing Advisors Limited, the Company's Investment Manager.

The property is situated in the West Midlands, and has been adapted for tenants with physical and/or mental disabilities or other care needs, and there is a care provider in place for the property.

The property is subject to a 25-year lease with a specialist Housing Association - Trinity Housing Association  ("Trinity") - focused around specialist supported living, with rents established by the relevant local authority and adjusted annually in line with CPI over the full period.  Trinity is a Registered Provider, regulated by the Homes and Communities Agency and a counterparty to leases within the Company's previous portfolios.

The investment 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.

 

END

 

 

ACQUVORRBUARUUA