Acquisitions Update

RNS Number : 3875A

Triple Point Social Housing REIT

29 May 2019

 

29 May 2019

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 completed the acquisition of 12 supported housing properties, exchanged contracts on a further three supported living properties and acquired the land and entered into forward funding arrangements to develop another three supported housing schemes, comprising 178 units in total, for an aggregate commitment of approximately £39.5 million (excluding costs). The properties are located in the East of England (16 units), the East Midlands (29 units), the West Midlands (26 units), the South West (25 units), London (79 units) and the South East (3 units).

The Group has entered into new FRI leases in respect of each of the properties acquired and, in relation to the properties on which the Group has exchanged contracts, will enter into new FRI leases on completion, for a minimum period of 20 years with the ability to extend. These leases are with specialist housing associations including 28A Supported Living, Hilldale Housing Association and Inclusion Housing.

In relation to the forward funded assets, the Group will enter into new FRI leases with Inclusion Housing and Chrysalis Supported Association on practical completion of each scheme, for a minimum period of 20 years with the ability to extend.

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 or the forward funded assets) subject to annual, upward-only rent reviews, increasing in line with the Consumer Price Index.

The properties comprise (or will comprise once construction completes) specialist, high quality homes for individuals with mental health and other support and care needs.

The properties generate (or will generate once construction completes) net initial yields in line with the Company's investment criteria and returns profile.

FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:

Triple Point Investment Management LLP (Delegated Investment Manager)	Tel: [phone]
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

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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