Civitas Social Housing PLC Company update regarding First Priority leases (5321N)
May 09 2018 - 8:12AM
UK Regulatory
TIDMCSH
RNS Number : 5321N
Civitas Social Housing PLC
09 May 2018
Resolution and Assignment of All First Priority Leases
9(th) May 2018
CIVITAS SOCIAL HOUSING PLC
("Civitas" or the "Company")
Resolution and Assignment of all First Priority Housing
Association Limited Leases
Further to the Company's announcement on 21(st) February 2018,
the Company is now pleased to provide an update and resolution with
respect to First Priority Housing Association Limited ("First
Priority") and the previously reported issues as they related to
the Company.
The Company announces that today, 9(th) May, all Civitas leases
previously with First Priority were assigned, on the same terms to
Falcon Housing Association C.I.C ("Falcon"), an existing Civitas
housing association partner. In addition, Civitas has acquired an
option to increase the length of the leases to 40 years from their
respective start dates, exercisable at Civitas' discretion. Post
this assignment, the Company has a total of 86 properties leased to
Falcon, which represents 12.7%** of 31 December 2017 Gross Asset
Value.
By way of background, the Company had leased 44* properties to
First Priority which is the subject of a Regulatory Notice from the
Regulator of Social Housing (the "Regulator") issued in February
2018. Since that time, Civitas has worked constructively with First
Priority and other interested parties to seek an appropriate
outcome that protects the interests of the Company's shareholders
and tenants.
Civitas notes that, in the event the Company does not recover
fully its rent arrears relating to the period prior to the
assignment of the leases, such arrears would not be material to the
Company, in any respect.
Falcon is a national, not for profit registered provider of
social housing for vulnerable adults that operates nationwide from
a head office in County Durham and has a presence in all major
regions. It is a Community Interest Company, which uses its
resources and assets for the public good, working in partnership
with a wide range of local authorities and care providers. It
obtained its Homes and Communities Agency (now the Regulator of
Social Housing) registration in July 2013.
Separately Civitas and Falcon have noted the recent Request for
Information made by the Regulator in April 2018 to a wide range of
registered providers as part of its work to gain a better
understanding of smaller registered providers engaged in specialist
supported housing services. Falcon has confirmed that it is in a
position to comply fully with this request.
Michael Wrobel, Chairman of Civitas, commented: "I am delighted
that we can now provide clarity for all our stakeholders. Our team
at Civitas Housing Advisors has achieved a successful outcome for
our shareholders in preserving their interests and I am equally
encouraged on behalf of our tenants that their homes have been
secured for the long-term. We are also very much looking forward to
continuing our positive relationship with Falcon over the coming
months and years."
Sharon Smith, General Manager of Falcon, commented: "Falcon is
committed to the provision of quality housing for vulnerable adults
nationwide. Within this mandate we are pleased to be extending our
relationship with Civitas for the benefit of our tenants and their
families".
In addition to this update, Civitas confirms that it will
shortly declare its quarterly dividend for the three months to
31(st) March 2018 in respect of both the Ordinary shares and the C
shares and on 30(th) May the Company will announce its IFRS and
Portfolio Net Asset Value for the quarter ended 31(st) March
2018.
* previously reported 45 properties included 1 property not
completed upon
** Gross Asset Value is the aggregate value of the total assets
of the Group once fully invested based upon the Net Asset Values as
at 31(st) December 2017, announced on 9(th) February 2018 and 30%
gross leverage
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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