Acquisition

RNS Number : 3751T

Civitas Social Housing PLC

12 October 2017

 

12 October 2017

CIVITAS SOCIAL HOUSING PLC

("Civitas" or the "Company")

£3.9 million Acquisition of a Portfolio of Supported Living Portfolios

The Board of Civitas Social Housing PLC is pleased to announce the Company has completed the purchase of a portfolio of supported living accommodation for a total consideration of £3.9 million, comprising the freehold interest in 4 properties, with 30 tenancies, in the South West of England. The portfolio is immediately income generating with an initial net yield in line with the Company's expectations and was sourced off-market by Civitas Housing Advisors Limited ("CHA"), the Company's Investment Manager.

Each property is subject to a 25-year lease with a specialist Housing Association - Providers of Accommodation and Support Housing Association ("PASHA") - focused around supported living, with rents established by the relevant local authority and adjusted annually by CPI+1% over the full period. PASHA is a Registered Provider, regulated by the Homes and Communities Agency and a counterparty to leases within the Company's previous portfolios.

The properties in the portfolio have been adapted for use as specialist supported living homes for tenants with physical and/or mental disabilities or other needs, with tailored support in place for tenants within each property.

The portfolio was funded through the Company's cash resources. In due course, it is intended that leverage will be applied 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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