Acquisition

RNS Number : 1164G

Civitas Social Housing PLC

02 November 2018

 

2 November 2018

CIVITAS SOCIAL HOUSING PLC

("Civitas" or the "Company")

£3.7 million acquisition of three regulated social housing properties

The Board of Civitas Social Housing PLC is pleased to announce that the Company has completed the purchase of three regulated social housing properties comprising 26 tenancies for a total consideration of £3,651,920. The properties are leased to Auckland Home Solutions C.I.C. ("Auckland") and Encircle Housing Limited ("Encircle") both of which are regulated by the Regulator of Social Housing and are counterparty to existing leases within the Company's 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 accommodation for tenants with learning disabilities and other care needs, and there is a care provider in place at each property. The properties are subject to 25 year leases and rents are adjusted annually in line with CPI over the full period.

The acquisitions were funded through the Company's cash resources from the Company's C Share of which a total of £234 million (before purchase costs) has now been invested and committed. In due course, following conversion of the C Share, 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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