£2.9m acquisition of regulated social housing

RNS Number : 6211H

Civitas Social Housing PLC

14 March 2018

 

14^th March 2018

CIVITAS SOCIAL HOUSING PLC

("Civitas" or the "Company")

£2.9 million acquisition of regulated social housing properties

The Board of Civitas Social Housing PLC is pleased to announce that the Company has completed the purchase of two regulated social housing properties for a total consideration of £2,943,462, with 17 tenancies. The properties are immediately income-generating with an initial net yield in line with the Company's expectations and both were sourced off-market by Civitas Housing Advisors Limited, the Company's Investment Manager.

The properties are situated in the Wales and North West England and have been adapted for use as residential care accommodation and supported living for tenants with learning disabilities and additional needs, and there is a care provider in place.

The properties are each subject to a 25-year lease with a specialist housing association: Chrysalis Supported Association Ltd ("Chrysalis") and Hilldale Housing Association ("Hilldale"). Both Chrysalis and Hilldale are focused on specialist supported living, with rents adjusted annually in line with CPI over the full period.  Chrysalis and Hilldale are registered providers, regulated by the Regulator of Social Housing, and are counterparties 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.

 

END

 

 

ACQDXLFFVXFXBBF