ACQUISITIONS UPDATE

RNS Number : 1022N

Triple Point Social Housing REIT

04 May 2018

 

4 May 2018

Triple Point Social Housing REIT plc

(the "Company" or, together with its subsidiaries, the "Group")

ACQUISITIONS UPDATE

The Board of Triple Point Social Housing REIT plc (tickers: SOHO and SOHC) is pleased to announce that the Group has completed the acquisition of one supported housing property and has acquired the land and entered into a forward funding arrangement to develop another supported housing scheme, comprising 22 units in total, for an aggregate commitment of £4.3 million (excluding costs). The properties are located in Bedfordshire (7 units) and Staffordshire (15 units). 

The Group has entered into a new FRI lease in respect of the completed property, for a minimum period of 20 years with the ability to extend for five years, with specialist housing association, Bespoke Supportive Tenancies Limited. In relation to the forward funded asset, the Group has an agreement for lease in place and will enter into a new FRI lease with Inclusion Housing CIC on practical completion of the scheme, also for a period of 20 years with the ability to extend for five years. The Company has contracted previously with both housing associations, which are regulated by the Regulator of Social Housing.

The rents received under the leases are (or will be, in the case of the forward funded asset) subject to annual, upward-only rent reviews, increasing in line with the Consumer Prices Index. Over the period of construction of the forward funded asset, the Group will accrue a coupon from the developer.

The properties comprise specialist, high quality homes refurbished for individuals with mental health and other support and care needs. 

The properties will (immediately or on completion of the forward funded development) generate net initial yields in line with the Company's investment criteria and returns profile.  

The acquisition of the property located in Bedfordshire has been funded from the proceeds of the C Share issue undertaken by the Company in March 2018 (in respect of which a prospectus was published on 7 March 2018 (the "Prospectus")) and, accordingly, the property will be attributed to the C Share pool (further details of which can be found in the Prospectus).

FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:

Triple Point Investment Management LLP (Delegated Investment Manager)	(via Newgate below)
James Cranmer
Ben Beaton
Max Shenkman
Justin Hubble
Akur Limited (Joint Financial Adviser)	Tel: [phone]
Tom Frost
Anthony Richardson
Siobhan Sergeant
Canaccord Genuity Limited (Joint Financial Adviser and Corporate Broker)	Tel: [phone]
Lucy Lewis
Denis Flanagan
Andrew Zychowski
Newgate (PR Adviser)	Tel: [phone]
James Benjamin	Em: [e-mail]
Anna Geffert
Patrick Hanrahan
Leena Patel

The Company's LEI is 213800BERVBS2HFTBC58.

Further information on the Company can be found on its website at www.triplepointreit.com.

NOTES:

The Company invests in social housing assets in the UK, with a particular focus on supported housing. The assets within the portfolio are subject to inflation-adjusted, long-term (typically from 20 years to 30 years), Fully Repairing and Insuring ("FRI") leases with Approved Providers (being Housing Associations, Local Authorities or other regulated organisations in receipt of direct payment from local government). The portfolio comprises investments into properties which are already subject to an FRI lease with an Approved Provider, as well as forward funding of pre-let developments but does not include any direct development or speculative development.

There is increasing political and financial pressure on Housing Associations to increase their housing delivery and this is creating opportunities for private sector investors to participate in the market. The Group's ability to provide forward financing for new developments not only enables the Company to secure fit for purpose, modern assets for its portfolio but also addresses the chronic undersupply of suitable supported housing properties in the UK at sustainable rents and delivering returns to investors.

Triple Point Investment Management LLP (part of the Triple Point Group) is responsible for management of the Group's portfolio (with such functions having been delegated to it by Langham Hall Fund Management LLP, the Company's alternative investment fund manager).

The Company was admitted to trading on the Specialist Fund Segment of the Main Market of the London Stock Exchange on 8 August 2017 and was admitted to the premium segment of the Official List of the Financial Conduct Authority and migrated to trading on the premium segment of the Main Market on 27 March 2018.  The Company operates as a UK Real Estate Investment Trust.

 

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