Civitas Social Housing PLC Acquisition (3237M)
April 27 2018 - 2:00AM
UK Regulatory
TIDMCSH
RNS Number : 3237M
Civitas Social Housing PLC
27 April 2018
27(th) April 2018
CIVITAS SOCIAL HOUSING PLC
("Civitas" or the "Company")
GBP6.4million acquisition of three specialist supported living
properties
The Board of Civitas Social Housing PLC is pleased to announce
that the Company has completed the purchase of two further
investments of specialist supported living properties for a total
consideration of GBP6.4 million.
The first investment comprises two specialist supported living
properties in Stockport, for a total consideration of GBP4,836,000,
containing 31 tenancies. The properties are managed by Encircle
Housing Limited ("Encircle"), a new housing association for
Civitas. The properties are already established as supported living
accommodation for tenants with mental health needs, and there is a
care provider in place. The properties are subject to a 25-year
lease with rents adjusted annually in line with CPI over the full
period.
Encircle is a housing association providing supported housing
for vulnerable tenants, and is regulated by the Regulator of Social
Housing ("RSH"). The Company is pleased to be working with Encircle
for the first time.
The second investment comprises one supported living property in
Bournemouth, for a total consideration of GBP1,585,998.67,
containing 10 tenancies. The property is managed by Pivotal Housing
Association (previously known as Providers of Accommodation and
Support Housing Association) ("Pivotal HA"). The property is
subject to a 25-year lease with rents adjusted annually in line
with CPI+1% over the full period.
Pivotal HA is a housing association which specialises in working
with vulnerable people to overcome difficulties. It is regulated by
the RSH, and is a counterparty to leases within the Company's
existing portfolio.
The properties are all immediately income-generating with an
initial net yield in line with the Company's expectations and were
sourced off-market by Civitas Housing Advisors Limited, the
Company's Investment Manager. The properties were funded through
the Company's cash resources from the Company's recently issued C
share. In due course, it is intended that leverage will be applied
to these properties in accordance with the Company's stated policy
and it is expected that this will further enhance the yield
achieved from the investments.
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 3058 4844
Andrew Dawber Tel: +44 (0)20 3058 4846
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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