Acquisition

RNS Number : 2054F

Civitas Social Housing PLC

19 February 2018

 

19 February 2018

CIVITAS SOCIAL HOUSING PLC

("Civitas" or the "Company")

£13.8 million Acquisition of two Regulated Social Housing Portfolios  

The Board of Civitas Social Housing PLC is pleased to announce the Company has completed the purchase of two regulated social housing portfolios for a total consideration of £13,771,333, comprising the freehold interest in  11 properties, with 69 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 Leicestershire and Gloucestershire and have been adapted for use as specialist supported living and residential care accommodation for tenants with mental illness or other care needs, and there is a care provider in place.

The properties are each subject to a 25-year lease with a specialist Housing Association - Trinity Housing Association  ("Trinity") - focused around specialist supported living, with rents established by the relevant local authority and adjusted annually in line with CPI over the full period.  Trinity is a Registered Provider, regulated by the Regulator of Social Housing and a counterparty to leases within the Company's previous portfolios.

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]

Paul Codd                             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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