Response to Regulatory Judgement

RNS Number : 2336S

Civitas Social Housing PLC

12 November 2021

 

12 November 2021

CIVITAS SOCIAL HOUSING PLC

Response to Regulatory Judgement

The Board of Civitas Social Housing PLC ("CSH", "Civitas" or the "Company") , the UK's leading care-based and healthcare REIT, notes the recent regulatory judgement by the Regulator of Social Housing ("RSH") in respect ofFalcon Housing Association CIC ("Falcon"),one of the 17 Approved Providers ("APs") working with CSH. In line with RSH policy, Falcon has not received a grading as it leases/owns fewer than 1,000 homes.

By way of background, the RSH announced in May 2018 a general review of housing associations engaged in the provision of property services for vulnerable people. Falcon's review is part of this regulatory process.

As at 31 March 2021, Falcon represents 19.9% of CSH' annualised rent roll. Falcon is a long-standing counterparty of the Company. Rent collection continues as normal and this is expected to continue to be the case.

Falcon has committed to continue to engage with the RSH and in turn CSH will continue its supportive relationship with Falcon and all other counterparties with the shared objective of further enhancing standards across the sector and encouraging APs to demonstrate their independence and self-reliance.

In respect of the judgement specifically, CSH notes the comments made by the RSH in respect of transactions linked to "directors and shareholders" of Falcon and the observation that such transactions were disclosed to the board of Falcon. For clarity, all transactions undertaken between the Company and Falcon have been on a fully independent and arm's-length basis with no connection between CSH, or its investment manager and Falcon, its directors, or shareholders other than in relation to the property transactions themselves.

Falcon is a national provider of social housing with a proven track-record of managing and maintaining supported living properties. Falcon works closely with family members, tenants, local authorities, and care providers to provide bespoke supported housing solutions with a high level of care for the vulnerable people for whom it provides homes. The Company looks forward to continuing to work with Falcon and its management team in the future.

ENDS

For further information, please contact:

Civitas Investment Management Limited

Paul Bridge                                       Tel: [phone]

Panmure Gordon

Sapna Shah                                           Tel: [phone]

Tom Scrivens Tel: [phone]

Liberum Capital                                            Tel: [phone]

Chris Clarke

Darren Vickers

Owen Matthews  

Buchanan

Helen Tarbet / Henry Wilson   Tel: [phone]

Hannah Ratcliff / George Beale    [e-mail]

Notes:

Civitas Social Housing PLC ("CSH") was created in 2016 by Civitas Investment Management Limited as the first dedicated London listed REIT, to raise long-term, sustainable, institutional capital to invest in care-based social homes across the UK. So far, Civitas has completed more than 120 individual transactions to build the largest portfolio of its kind that has been independently valued at £915.6million (31 March 2021). CSH now provides homes for 4,391 working age adults with long-term care needs, in 648 bespoke properties that are supported by 119 specialist care providers, 17 approved providers and working with over 178 individual local authorities.

 

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