Civitas Social Housing PLC Acquisition (0589D)
April 24 2017 - 2:00AM
UK Regulatory
TIDMCSH
RNS Number : 0589D
Civitas Social Housing PLC
24 April 2017
24 April 2017
CIVITAS SOCIAL HOUSING PLC
("Civitas" or the "Company")
GBP3.5m Acquisition of a Supported Living Portfolio
The Board of Civitas Social Housing PLC is pleased to announce
the Company has, as part of its ongoing investment programme,
completed the purchase of a portfolio of regulated social housing
for a total consideration of GBP3.5 million, comprising the
freehold interest in 3 supported living properties, with 13
tenancies, in the West Midlands and South East 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 Manager.
Each of the properties within the portfolio is subject to a
25-year lease with one of three specialist Housing Associations -
Westmoreland Supported Housing Association ("Westmoreland"),
Trinity Housing Association ("Trinity") and Hilldale Housing
Association ("Hilldale") - focused around supported living, with
rents established by the relevant local authority and adjusted
annually in line with inflation (CPI) over the full period. These
Housing Associations are all Registered Providers, regulated by the
Homes and Communities Agency ("HCA") and are all counterparties to
leases within the Company's previous portfolios.
The properties in the portfolio have been 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.
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
END
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