Acquisition

RNS Number : 3237M

Civitas Social Housing PLC

27 April 2018

 

27^th April 2018

CIVITAS SOCIAL HOUSING PLC

("Civitas" or the "Company")

£6.4million acquisition of three specialist supported living properties

The Board of Civitas Social Housing PLC is pleased to announce that the Company has completed the purchase of two further investments of specialist supported living properties for a total consideration of £6.4 million.

The first investment comprises two specialist supported living properties in Stockport, for a total consideration of £4,836,000, containing 31 tenancies. The properties are managed by Encircle Housing Limited ("Encircle"), a new housing association for Civitas. The properties are already established as supported living accommodation for tenants with mental health needs, and there is a care provider in place. The properties are subject to a 25-year lease with rents adjusted annually in line with CPI over the full period.

Encircle 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 Encircle for the first time.

The second investment comprises one supported living property in Bournemouth, for a total consideration of £1,585,998.67, containing 10 tenancies. The property is managed by Pivotal Housing Association (previously known as Providers of Accommodation and Support Housing Association) ("Pivotal HA"). The property is subject to a 25-year lease with rents adjusted annually in line with CPI+1% over the full period.

Pivotal HA is a housing association which specialises in working with vulnerable people to overcome difficulties. It is regulated by the RSH, and is a counterparty to leases within the Company's existing portfolio. 

The properties are all 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 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 these properties in accordance with the Company's stated policy and it is expected that this will further enhance the yield achieved from the investments.

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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