Acquisition

RNS Number : 9510C

Civitas Social Housing PLC

04 October 2018

 

4^th October 2018

CIVITAS SOCIAL HOUSING PLC

("Civitas" or the "Company")

£8.1 million acquisition of three specialist supported living properties

The Board of Civitas Social Housing PLC is pleased to announce that the Company has completed the purchase of three specialist supported living properties for a total consideration of £8,064,109, comprising 42 tenancies.  The properties are leased to Falcon Housing association C.I.C. ("Falcon") and Inclusion Housing C.I.C ("Inclusion") both of which are regulated by the Regulator of Social Housing and is a counterparty to existing leases within the Company's portfolio.

The properties will be immediately income-generating with an initial net yield in line with the Company's expectations and were sourced off-market by Civitas Housing Advisors Limited, the Company's investment manager.

The properties have been adapted for use as specialist supported living for tenants with autism, learning disabilities and other needs, and there is a care provider in place at each property. The properties are subject to either a 25 or 30 year lease and rents are adjusted annually in line with CPI over the full period.

The acquisitions were funded through the Company's cash resources from the Company's C Share of which a total of £217.1 million (before purchase costs) has now been invested. In due course, following conversion of the C Share, it is intended that leverage will be applied to this portfolio 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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