Civitas Social Housing PLC Acquisition (5063J)
29 June 2017 - 4:00PM
UK Regulatory
TIDMCSH
RNS Number : 5063J
Civitas Social Housing PLC
28 June 2017
29 June 2017
CIVITAS SOCIAL HOUSING PLC
("Civitas" or the "Company")
GBP22.0m Acquisition of a regulated Social Housing Portfolio
The Board of Civitas Social Housing PLC is pleased to announce
the Company has completed the purchase of a portfolio of regulated
social housing for a total consideration of GBP22.0 million,
comprising the freehold interest in 16 supported living properties,
with 173 tenancies. The properties are situated across the country
within eight different local authority areas. 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 22-year lease with a specialist
Housing Association - Inclusion Housing CIC ("Inclusion") - focused
around supported living, with rents established by the relevant
local authority and adjusted annually by inflation (CPI) over the
full period. Inclusion is a Registered Provider, regulated by the
Homes and Communities Agency ("HCA") 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 care needs, and a care provider for
each property is in place.
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.
The social homes owned by Civitas are provided on a long-term
basis to Housing Associations with a wide range of tenants who vary
in age profile and in the level of support that each receives.
By acquiring these social homes, and working with Housing
Associations, Civitas seeks for tenants to experience a stable,
high-quality living environment that offers good visibility of
tenure. The Company promotes "additionality" by the provision of
new equity capital that has the potential to be redeployed in the
delivery of new social homes.
Civitas aims to deliver 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: +44 (0)20 3709 4622
Andrew Dawber Tel: +44 (0)20 3709 4626
Cenkos Securities PLC
Sapna Shah Tel: +44 (0)20 7397 1922
Tom Scrivens Tel: +44 (0)20 7397 1915
Pagefield
Philip Dennis Tel: +44 (0)7947 868206
David Leslie Tel: +44 (0)7584 070274
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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