Acquisitions Update

RNS Number : 1291D

Triple Point Social Housing REIT

29 January 2018

 

 29 January 2018

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) is pleased to announce that the Group has contracted on 7 properties, comprising 47 units, for an aggregate commitment of £7.4 million (excluding costs).

Of these, the Group has completed the acquisitions of five supported housing properties and exchanged contracts on one further supported housing property, comprising 29 units in total, for an aggregate purchase price of approximately £4.4 million (excluding costs). The properties are located in Loughborough (15 units), Macclesfield (4 units) and Wakefield (10 units).

The properties are subject to new FRI leases for a period of 20 years with the ability to extend up to 25 years. These leases are with specialist Housing Associations, Inclusion Housing CIC and Westmoreland Supported Housing, which are Registered Providers (regulated by the Regulator for Social Housing).

These properties are immediately income generating from completion with a net intial yield in line with the Company's investment criteria and returns profile.

First Forward Funding

The Group has also acquired the land and entered into its first forward funding arrangement to develop an 18 unit supported housing scheme for a total project cost of approximately £3.0 million (excluding costs). The property, Eldon Lodge, is located in Bradford and involves the redevelopment of a Grade II listed building. 

The Group will accrue a coupon from the developer over the period of construction. The property is pre-let to Westmoreland Supported Housing and, once the practical completion of the works has been certified, the Group will enter into in a new FRI lease with Westmoreland Supported Housing for a period of 20 years with the ability to extend to 30 years. The yield will be in line with the Company's investment criteria and return profile.

The rents received under the leases are (or will be in the case of Eldon Lodge), subject to annual, upward only rent reviews, increasing in line with the Consumer Prices Index ("CPI"). The properties comprise specialist, high quality homes built or refurbished for individuals with mental health and other support and care needs.

Following these transactions, the Group has deployed approximately £147 million of the net proceeds from its IPO into the acquisition or funding of supported housing assets.

Factsheet

The Company's first quarterly factsheet which covers the period to 31 December 2017 is now available on on its webiste at www.triplepointreit.com.

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]
Andrew Zychowski
Lucy Lewis
Denis Flanagan
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 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 Registered 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 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 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.

 

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