£5.4 million acquisition

RNS Number : 3848R

Civitas Social Housing PLC

14 June 2018

 

14^th June 2018

CIVITAS SOCIAL HOUSING PLC

("Civitas" or the "Company")

£5.4 million acquisition of six Specialist Supported Living Properties and one Residential Care Property

The Board of Civitas Social Housing PLC is pleased to announce that the Company has completed the purchase of six specialist supported living properties and one residential care property for a total consideration of £5,404,000 ("the portfolio"), comprising 44 tenancies. The properties will be managed by Falcon Housing Association ("Falcon"). Falcon is a Registered Provider, regulated by the Regulator of Social Housing, and are counterparty to leases within the Company's existing portfolio.

The properties will be 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 specialist supported living and residential care accommodation for tenants with autism and other care needs, and there is a care provider in place at each property. The properties are subject to 25-year leases with rents adjusted annually in line with CPI over the full period.

The portfolio was 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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