Acquisition

RNS Number : 7941P

Civitas Social Housing PLC

04 September 2017

 

5 September 2017

CIVITAS SOCIAL HOUSING PLC

("Civitas" or the "Company")

£5.8 million Acquisition of three Specialist Supported Living Portfolios

The Board of Civitas Social Housing PLC is pleased to announce the Company has completed the purchase of three portfolios of specialist supported living for a total consideration of £5.8 million, comprising the freehold interest in 11 properties, with 52 tenancies. The portfolios are immediately income generating with an initial net yield in line with the Company's expectations and all three were sourced off-market by Civitas Housing Advisors Limited ("CHA"), the Company's Investment Manager.

Portfolio One

Portfolio one was acquired for a total consideration of £2,375,000, comprising 25 tenancies within 6 properties. The properties are situated across the country within 6 different local authority areas. 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 ("HCA") and a counterparty to leases within the Company's previous portfolios.

Portfolio Two

Portfolio two was acquired for a total consideration of £1,767,999, comprising 15 tenancies within a single property. The property is situated in the South West of England. This property is subject to a 25-year lease with a specialist Housing Association - Providers of Accommodation and Support Housing Association ("PASHA") - focused around supported living, with rents established by the relevant local authority and adjusted annually by CPI+1% over the full period. PASHA is a Registered Provider, regulated by the HCA and a counterparty to leases within the Company's previous portfolios.

Portfolio Three

Portfolio three was acquired for a total consideration of £1,633,667, comprising 12 tenancies within 4 properties. The properties are situated in the North of England within 3 different local authority areas. Each 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 +1 % over the full period. Trinity is a Registered Provider, regulated by the HCA and a counterparty to leases within the Company's previous portfolios.

The properties in all three portfolios have been adapted for use as specialist supported living homes for tenants with physical and/or mental disabilities or other needs, with tailored support in place for tenants within each property.

The portfolios were 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.

Further to the announcement dated 18 April 2017 confirming that the Company had exchanged contracts for the purchase of a portfolio of regulated social housing for a total consideration of £11.5 million, the Board of Civitas Social Housing PLC is pleased to announce that the Company has now completed the purchase of this portfolio of ten properties comprising 79 tenancies.

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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