Civitas Social Housing PLC Acquisition (7989D)
May 02 2017 - 2:01AM
UK Regulatory
TIDMCSH
RNS Number : 7989D
Civitas Social Housing PLC
02 May 2017
2 May 2017
CIVITAS SOCIAL HOUSING PLC
("Civitas" or the "Company")
GBP11m 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 GBP11 million,
comprising the freehold interest in 10 supported living properties,
with 55 tenancies, in the West Midlands, South East and East 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 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") and are
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 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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May 02, 2017 02:01 ET (06:01 GMT)
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