Portfolio update: Westmoreland Supported Housing

RNS Number : 1320O

Triple Point Social Housing REIT

30 September 2019

 

30 September 2019

Triple Point Social Housing REIT plc

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

Portfolio update - Westmoreland Supported Housing Association

The Board of Triple Point Social Housing REIT plc (ticker: SOHO) notes a further Regulatory Judgement published today by the Regulator of Social Housing (the "Regulator") in relation to Westmoreland Supported Housing Association ("Westmoreland") which follows the Regulatory Judgement published on 30 November 2018 and the Regulatory Notice published on 20 May 2019.

The Company has 15 leases in place with Westmoreland, on properties which represented 4.7 per cent. of the Company's net assets as at 30 June 2019. 

The Regulatory Judgement maintains Westmoreland's Viability grade at V3, but changes Westmoreland's Governance rating from G3 to G4.  While the Regulatory Judgement acknowledges that progress has been made across a number of areas, it also notes that Westmoreland was subject to a creditor action in July 2019.  As a result, the Regulator has appointed three directors to Westmoreland's board to help further increase its capacity and skills and, in accordance with its procedures, has downgraded Westmoreland's Governance rating. The Company understands that this was an isolated creditor action as a result of a commercial dispute relating to specific properties (none of which are owned by the Company). The creditor action has since been withdrawn.

All payments under the Company's leases with Westmoreland continue to be paid on time.

FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:

Triple Point Investment Management LLP (Delegated Investment Manager)	Tel: [phone]
James Cranmer
Ben Beaton
Max Shenkman
Justin Hubble
Akur Limited (Joint Financial Adviser)	Tel: [phone]
Tom Frost
Anthony Richardson
Siobhan Sergeant
Investec Bank plc (Joint Financial Adviser and Corporate Broker)	Tel: [phone]
Lucy Lewis
Denis Flanagan
Tom Skinner

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 primarily newly developed 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 as well as 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 ("REIT") and is a constituent of the FTSE EPRA/NAREIT index.

 

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