Portfolio Update - My Space Housing Solutions

RNS Number : 8365M

Triple Point Social Housing REIT

16 January 2023

 

16 January 2023

Triple Point Social Housing REIT plc

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

Portfolio Update - My Space Housing Solutions

Following the Company's announcement on 19 December 2022 (RNS number 1767k), the Board of Triple Point Social Housing REIT plc (ticker: SOHO) notes the enforcement notice published today by the Regulator of Social Housing (the "Regulator") in relation to My Space Housing Solutions ("My  Space").

In its regulatory judgement on 19 December 2022 (the "December 2022 Judgement"), the Regulator noted that My Space was subject to regulatory intervention or enforcement action, both in relation to My Space's governance and financial viability, and that it was in the process of serving an enforcement notice on My Space under section 219 to 224 of the Housing Regeneration Act 2008 (the Act) (the "Enforcement Notice"). As of today, the Enforcement Notice has been published by the Regulator.

The Enforcement Notice reiterates the concerns of the Regulator detailed in the December 2022 Judgement and gives My Space directions to undertake certain actions within clear timeframes specified by the Regulator. These directions are focused on resolving My Space's solvency position, ensuring its rents are compliant and that My Space is compliant with the Regulator's standards.

The Group's investment manager, Triple Point Investment Management LLP (the "Manager"), continues to engage actively with My Space regarding making significant improvements to its operations. As part of this ongoing engagement, the Group will consider whether it is appropriate to put in place alternative arrangements for some or all of its properties currently leased to My Space.

FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:

Triple Point Investment Management LLP (Investment Manager)	Tel: [phone]
Max Shenkman
Isobel Gunn-Brown
Akur Capital (Joint Financial Adviser)	Tel: [phone]
Tom Frost
Anthony Richardson
Siobhan Sergeant
Stifel (Joint Financial Adviser and Corporate Broker)	Tel: [phone]
Mark Young
Mark Bloomfield
Rajpal Padam Madison Kominski

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 majority of the assets within the portfolio are subject to inflation-linked, long-term, 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 a 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 pressure and social need to increase housing supply across the UK which is creating opportunities for private sector investors to help deliver this housing. The Group's ability to provide forward funding 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.

The Company is a UK Real Estate Investment Trust ("REIT") listed on the premium segment of the Official List of the UK Financial Conduct Authority and is a constituent of the FTSE EPRA/NAREIT index.

Additional information on regulation

The Specialised Supported Housing sector is regulated by the Regulator who carries out assessments on registered providers either through a scheduled In-depth assessment ("IDA") or reactive engagement. When a registered provider passes the 1,000-unit threshold, it automatically becomes subject to a detailed IDA by the Regulator. The IDA assesses compliance with the requirements of the Governance and Financial Viability Standard. The outcome of an IDA results in the Regulator publishing a formal grading (V 1-4 for Viability and G 1-4 for Governance, where V1-2 and G1-2 are considered "compliant" ratings, and V3-4 and G3-4 are considered "non-compliant" ratings), known as a regulatory judgement.

 

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