£10.9million acquisition

RNS Number : 6469W

Civitas Social Housing PLC

27 April 2021

 

27 April 2021

CIVITAS SOCIAL HOUSING PLC

("Civitas" or the "Company")

£10.9m acquisition of supported living and care facilities in South Wales

Civitas Social Housing PLC, the leading care-based housing and healthcare REIT, is pleased to announce that the Company has completed the acquisition of 15 supported living and care facilities in South Wales for a total consideration of £10.9 million (excluding purchase costs).

The portfolio provides 51 beds and long-term support for individuals with learning disabilities and mental health care needs along with dedicated facilities to develop and enhance independent living skills, such as cooking, numeracy and literacy.

The properties are subject to 25-year leases with Auckland Home Solutions C.I.C. ("Auckland") with rents adjusted annually in line with CPI over the full-term and are subject to a lower limit of inflation of 0% per annum and a maximum indexation of 4% per annum. Auckland is a counterparty to existing leases within the Company's portfolio.

The properties are immediately income generating with an initial net yield in line with the Company's present expectations and were sourced by Civitas Investment Management Limited, the Company's Investment Adviser.

The transaction represents the first to be financed with the proceeds from the recently secured debt facility with M&G. Civitas continues to focus on the acquisition of properties that have been significantly adapted or purpose-built for the delivery of mid to higher acuity care and has a significant pipeline of similar opportunities which are progressing well.

Paul Bridge, CEO Social Housing, Civitas Investment Management, said:

"We are delighted to complete this acquisition using proceeds from our new debt facility and leveraging our unique relationships within the sector to secure the purchase of these state-of-the-art care facilities. These have been adapted on a bespoke basis to enable individual vulnerable adults to live in a safe and secure home whilst remaining part of their community. The acquisition will extend the Company's geographic diversity whilst meeting the ongoing key strategic objective of delivering sustainable returns to shareholders and providing measurable social impact to society."

ENDS

For further information, please contact:

Civitas Investment Management Limited

Paul Bridge                                      Tel: [phone]

Andrew Dawber                                   Tel: [phone]

Panmure Gordon

Sapna Shah                                           Tel: [phone]

Tom Scrivens Tel: [phone]

Liberum Capital Limited

Gillian Martin / Chris Clarke Tel: [phone]

Buchanan

Helen Tarbet / Henry Wilson   Tel: [phone]

Hannah Ratcliff / George Beale    [e-mail]

Notes:

Civitas Social Housing PLC ("Civitas") was created in 2016 by Civitas Investment Management Limited as the first dedicated London listed REIT, to raise long-term, sustainable, institutional capital to invest in care-based social homes across the UK. So far, Civitas has completed more than 120 individual transactions to build the largest portfolio of its kind that has been independently valued on an IFRS basis at £901.1million (31 December 2020). Civitas now provides homes for 4,346 working age adults with long-term care needs, in 634 bespoke properties that are supported by 119 specialist care providers, 16 approved providers and working with over 172 individual local authorities.

 

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