£2.6m acquisition of five specialist properties

RNS Number : 1897K

Civitas Social Housing PLC

09 April 2018

 

9^th April 2018

CIVITAS SOCIAL HOUSING PLC

("Civitas" or the "Company")

£2.6 million acquisition of five specialist supported living properties

The Board of Civitas Social Housing PLC is pleased to announce that the Company has completed the purchase of five specialist supported living properties for a total consideration of £2,643,424 ("the portfolio"), containing 19 tenancies. The portfolio includes four specialist supported living properties in the north, north west and south west of England, managed by Falcon Housing Association ("Falcon"), and one specialist supported living property in Worcester managed by Blue Square Residential Limited ("Blue Square").

The properties are immediately income-generating with an initial net yield in line with the Company's expectations and were sourced off-market by Civitas Housing Advisors Limited, the Company's Investment Manager.

The properties have been adapted for use as supported living accommodation for tenants with learning disabilities and additional needs, and there is a care provider in place at each property. The properties are each subject to a 25-year lease with rents adjusted annually in line with CPI over the full period.

Blue Square is a housing association providing supported housing for vulnerable tenants, and is regulated by the Regulator of Social Housing ("RSH"). The Company is pleased to be working with Blue Square for the first time. Falcon is a registered provider, also regulated by the RSH, and is counterparty to leases within the Company's existing portfolio.

The portfolios were funded through the Company's cash resources from the Company's recently issued C share. In due course, it is intended that leverage will be applied to this portfolio in accordance with the Company's stated policy and it is expected that this will further enhance the yield achieved from this investment.

Civitas targets the objective of delivering sustainable returns to its shareholders by making socially relevant investments within the regulated social housing sector in England and Wales.

For further information, please contact:

Civitas Housing Advisors Limited

Paul Bridge                           Tel: [phone]

Andrew Dawber                   Tel: [phone]

Cenkos Securities PLC

Sapna Shah                           Tel: [phone]

Tom Scrivens                        Tel: [phone]

Pagefield

Philip Dennis                       Tel: [phone]

David Leslie                          Tel: [phone]

Notes:

Civitas Social Housing PLC is the first Real Estate Investment Trust offering pure play exposure to social housing in England and Wales.  The Company is managed by Civitas Housing Advisors Limited.  The Company is listed on the premium listing segment of the Official List of the Financial Conduct Authority and was admitted to trading on the main market for listed securities of the London Stock Exchange in November 2016.

 

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