Civitas Social Housing PLC Acquisition (2711B)
April 03 2017 - 2:00AM
UK Regulatory
TIDMCSH
RNS Number : 2711B
Civitas Social Housing PLC
03 April 2017
3 April 2017
CIVITAS SOCIAL HOUSING PLC
("Civitas" or the "Company")
GBP17m Acquisition of a Supported Living Portfolio
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 GBP17 million,
comprising the freehold interest in 16 supported living properties,
with 92 tenancies, across the south of England. The portfolio is
immediately income generating with an initial net yield of 6.0%,
based on the purchase price (excluding purchase costs) and was
sourced off-market by Civitas Housing Advisors Limited ("CHA"), the
Company's Investment Adviser.
Each of the properties within the portfolio is subject to a
25-year lease with one of two specialist Housing Associations -
Westmoreland Supported Housing Association ("Westmoreland") and
Trinity Housing Association ("Trinity") - focused around supported
living, with rents established by the relevant local authority and
adjusted annually in line with inflation (CPI) over the full
period.
Both Housing Associations are Registered Providers, regulated by
the Homes and Communities Agency ("HCA"). Westmoreland is a
counterparty to leases within the Company's previous portfolios.
Trinity provides bespoke accommodation that is designed to meet the
needs of vulnerable adults. It was founded in 2006 to develop and
manage supported living schemes and currently provides in excess of
800 tenancies across 10 local authorities.
The properties in the portfolio have been, or will be, adapted
for use as specialist supported living homes for tenants with
physical and/or mental disabilities or other care needs, and a care
provider for each property is in place.
The portfolio was funded through the Company's cash resources.
In due course 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.
Progress
Following this acquisition, the Company has invested GBP106
million (excluding purchase costs) in 487 tenancies and 83
individual properties across the country. This represents an
increasingly diversified portfolio of built and yielding social
homes, each maintained by one of five different Housing
Associations, each regulated by the HCA.
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 our shareholders by making socially relevant investments within
the regulated social housing sector in England and Wales.
Michael Wrobel, Chairman of Civitas, commented:
"With the acquisition of this additional portfolio of
properties, Civitas has successfully deployed GBP106 million of
capital into the social housing sector. This is very much in line
with the strategy we set out at the time of the Company's IPO in
November. As it currently stands, Civitas' overall portfolio
comprises a diverse range of social housing across 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
END
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