Acquisition

RNS Number : 8638Q

Civitas Social Housing PLC

11 June 2018

 

11^th June 2018

CIVITAS SOCIAL HOUSING PLC

("Civitas" or the "Company")

£9.0 million acquisition of five Specialist Supported Living Properties

The Board of Civitas Social Housing PLC is pleased to announce that the Company has completed the purchase of five specialist supported living properties for a total consideration of £9,017,155 ("the portfolio"), comprising 43 tenancies. The properties will be managed by Chrysalis Supported Association Limted ("Chrysalis"), Encircle Housing Limited ("Encircle") and Falcon Housing Association ("Falcon"). Chrysalis, Encircle and Falcon are Registered Providers, regulated by the Regulator of Social Housing, and are counterparties 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 or will be adapted for use as specialist supported living accommodation for tenants with learning disabilities and other 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 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 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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