Acquisition

RNS Number : 6464U

Triple Point Social Housing REIT

26 October 2017

 

26 October 2017

Triple Point Social Housing REIT plc

(the "Company" or, together with its subsidiaries, the "Group")

ACQUISITIONS UPDATE

The Board of Triple Point Social Housing REIT plc (ticker: SOHO) (the "Board") is pleased to announce that the Group has completed the acquisition of two supported housing properties, comprising 40 units in total, for an aggregate purchase price of £5.2 million (excluding costs). The properties are located in North Ormesby, Middlesbrough (14 units) and Stockton-on-Tees, County Durham (26 units).

The Group has entered into a new 20-year FRI lease, with the ability to extend to 25 years, in respect of each property. These leases are with specialist Housing Association, My Space Housing Solutions, which is a Registered Provider (regulated by the Homes and Communities Agency).

The rents received under the leases are subject to annual, upward only rent reviews, increasing in line with Consumer Prices Index ("CPI"). The properties comprise specialist, high quality homes developed for individuals with mental health and other complex care needs.

The properties are immediately income generating with a net intial yield in line with the Company's investment criteria and returns profile. To date, the Company has invested c. £37 million of the net proceeds of its recent IPO (the "Net Proceeds") acquiring, in aggregate, 22 properties (215 units) across the country.

Triple Point Investment Management LLP, the Company's Delegated Investment Manager, continues to evaluate an attractive pipeline of investment opportunities for the Company with a range of developers, third party vendors and Housing Associations and expects to have substantially invested the Net Proceeds by the end of the year.

FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:

Triple Point Investment Management LLP (Delegated Investment Manager)	(via Newgate below)
James Cranmer
Ben Beaton
Max Shenkman
Justin Hubble
Akur Limited (Joint Financial Adviser)	Tel: [phone]
Tom Frost
Anthony Richardson
Siobhan Sergeant
Canaccord Genuity Limited (Joint Financial Adviser and Corporate Broker)	Tel: [phone]
David Yovichic
Lucy Lewis
Denis Flanagan
Newgate (PR Adviser)	Tel: [phone]
James Benjamin	Em: [e-mail]
Anna Geffert
Lydia Thompson

Further information on the Company can be found on its website at www.triplepointreit.com.

NOTES:

The Company invests in social housing assets in the UK, with a particular focus on supported housing. The assets within the portfolio will typically be subject to inflation-adjusted, long-term (from 20 years to 25 years), Fully Repairing and Insuring ("FRI") leases with Approved Providers. The portfolio will comprise investments into properties which are already subject to an FRI lease with a Housing Association, Local Authority or other regulated organisation as well as forward funding of pre-let developments but will not include any direct development or speculative development.

There is increasing political and financial pressure on Housing Associations to increase their housing delivery and this is creating opportunities for private sector investors to participate in the market. The Group's ability to provide forward financing for new developments is critical to securing deal flow for the Company whilst addressing the key structural issue of the chronic undersupply of suitable supported housing properties in the UK at sustainable rents and delivering returns to investors.

Triple Point Investment Management LLP (part of the Triple Point Group) is responsible for management of the Group's portfolio (with such functions having been delegated to it by Langham Hall Fund Management LLP, the Company's alternative investment fund manager).

The Company was admitted to trading on the Specialist Fund Segment of the Main Market of the London Stock Exchange on 8 August 2017 and operates as a UK Real Estate Investment Trust.

 

END

 

 

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