ACQUISITIONS AND DEPLOYMENT UPDATE

RNS Number : 9219Z

Triple Point Social Housing REIT

06 September 2018

 

THIS ANNOUNCEMENT HAS BEEN DETERMINED TO CONTAIN INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014.

6 September 2018

Triple Point Social Housing REIT plc

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

ACQUISITIONS AND DEPLOYMENT UPDATE

The Board of Triple Point Social Housing REIT plc (ticker: SOHO) is pleased to announce that the Group has completed the acquisition of five supported housing properties, exchanged contracts on one further supported housing property, and has acquired the land and entered into forward funding arrangements to develop another supported housing scheme, comprising 38 units in total, for an aggregate commitment of £6.2 million (excluding costs). The properties are located in the North West (5 units), Yorkshire (3 units), the West Midlands (20 units), the East Midlands (3 units), the South West (3 units) and the South East (4 units).

The Group has entered into new FRI leases in respect of each of the properties (other than the exchanged and forward funded assets) for a minimum period of 20 years with the ability to extend to 25 years. These leases are with specialist housing associations with whom the Company has contracted previously, namely Chrysalis Supported Association, Falcon Housing Association and Hilldale Housing Association. In relation to the exchanged and forward funded assets, the Group will enter into new FRI leases with Auckland Home Solutions and Hilldale Housing Association on practical completion of each scheme, for a period of 20 years with the ability to extend to 25 years. All the housing associations are regulated by the Regulator of Social Housing.

The rents received under the leases are (or will be, in the case of the exchanged and forward funded assets) subject to annual, upward-only rent reviews, increasing in line with the Consumer Price Index. Over the period of construction of the forward funded asset, the Group will accrue a coupon from the developer.

The properties comprise specialist, high quality homes refurbished for individuals with mental health and other support and care needs.

The properties will (immediately or on completion of the acquisitions) generate net initial yields in line with the Company's investment criteria and returns profile.

Deployment Update

The Company's Delegated Investment Manager, Triple Point Investment Management LLP ("Triple Point"), has access to a significant pipeline of potential investments and is currently engaged in discussions with various parties (including Approved Providers and developers) in relation to a number of assets that meet the Company's investment criteria and on terms Triple Point considers attractive to the Company.

The Company expects to have substantially invested or committed the proceeds of its recent debt raise (announced on 23 July 2018) by the end of October and therefore intends to undertake a further issue of equity by way of a placing, open offer and offer for subscription (the "Issue") shortly. The Company expects to publish a prospectus in connection with the Issue in mid-September following publication of the Company's interim accounts for the half year to 30 June 2018.

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]
Lucy Lewis
Denis Flanagan
Andrew Zychowski
Newgate (PR Adviser)	Tel: [phone]
James Benjamin	Em: [e-mail]
Anna Geffert

The Company's LEI is 213800BERVBS2HFTBC58.

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

NOTES:

The Company invests in primarily newly developed social housing assets in the UK, with a particular focus on supported housing. The assets within the portfolio are subject to inflation-adjusted, long-term (typically from 20 years to 30 years), Fully Repairing and Insuring ("FRI") leases with Approved Providers (being Housing Associations, Local Authorities or other regulated organisations in receipt of direct payment from local government). The portfolio comprises investments into properties which are already subject to an FRI lease with an Approved Provider, as well as forward funding of pre-let developments but does 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 not only enables the Company to secure fit for purpose, modern assets for its portfolio but also addresses the chronic undersupply of suitable supported housing properties in the UK at sustainable rents as well as 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 was admitted to the premium segment of the Official List of the Financial Conduct Authority and migrated to trading on the premium segment of the Main Market on 27 March 2018. The Company operates as a UK Real Estate Investment Trust ("REIT") and is a constituent of the FTSE EPRA/NAREIT index.

 

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