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Civitas Soc Hous PLC (CSH)

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Friday 11 August, 2017

Civitas Soc Hous PLC

Acquisition

RNS Number : 7519N
Civitas Social Housing PLC
11 August 2017
 

11 August 2017

CIVITAS SOCIAL HOUSING PLC

("Civitas" or the "Company")

 

£22.9m Acquisition of a Portfolio of Supported Living Properties

The Board of Civitas Social Housing PLC is pleased to announce the Company has completed the purchase of a portfolio of regulated social housing for a total consideration of £22.9 million, comprising the freehold interest in 21 supported living properties, with 183 tenancies, in the South West of England. The portfolio is immediately income generating with an initial net yield in line with the Company's expectations and was sourced off-market by Civitas Housing Advisors Limited ("CHA"), the Company's Investment Manager.

Each 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 specialises in working with vulnerable people to overcome difficulties, building a better, more independent future for its tenants. It provides secure housing, education and life skills to enable independent living, facilitating interaction with and becoming part of the local community.

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

The portfolio was 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.

The social homes owned by Civitas are provided on a long-term basis to Housing Associations with a wide range of tenants who vary in age profile and in the level of support that each receives.

By acquiring these social homes, and working with Housing Associations, Civitas seeks for tenants to experience a stable, high-quality living environment that offers good visibility of tenure and further, the Company promotes "additionality" by the provision of new equity capital that has the potential to be redeployed in the delivery of new social homes.

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: +44 (0)20 3709 4622

Andrew Dawber                   Tel: +44 (0)20 3709 4626

 

Cenkos Securities PLC

Sapna Shah                           Tel: +44 (0)20 7397 1922

Tom Scrivens                        Tel: +44 (0)20 7397 1915

 

Pagefield

Philip Dennis                       Tel: +44 (0)7947 868206

David Leslie                          Tel: +44 (0)7584 070274

 

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.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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