Civitas Social Housing PLC Acquisition (7941P)
05 September 2017 - 4:00PM
UK Regulatory
TIDMCSH
RNS Number : 7941P
Civitas Social Housing PLC
04 September 2017
5 September 2017
CIVITAS SOCIAL HOUSING PLC
("Civitas" or the "Company")
GBP5.8 million Acquisition of three Specialist Supported Living
Portfolios
The Board of Civitas Social Housing PLC is pleased to announce
the Company has completed the purchase of three portfolios of
specialist supported living for a total consideration of GBP5.8
million, comprising the freehold interest in 11 properties, with 52
tenancies. The portfolios are immediately income generating with an
initial net yield in line with the Company's expectations and all
three were sourced off-market by Civitas Housing Advisors Limited
("CHA"), the Company's Investment Manager.
Portfolio One
Portfolio one was acquired for a total consideration of
GBP2,375,000, comprising 25 tenancies within 6 properties. The
properties are situated across the country within 6 different local
authority areas. Each property is subject to a 22-year lease with a
specialist Housing Association - Inclusion Housing CIC
("Inclusion") - focused around specialist supported living, with
rents established by the relevant local authority and adjusted
annually in line with 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.
Portfolio Two
Portfolio two was acquired for a total consideration of
GBP1,767,999, comprising 15 tenancies within a single property. The
property is situated in the South West of England. This property is
subject to a 25-year lease with a specialist Housing Association -
Providers of Accommodation and Support Housing Association
("PASHA") - focused around supported living, with rents established
by the relevant local authority and adjusted annually by CPI+1%
over the full period. PASHA is a Registered Provider, regulated by
the HCA and a counterparty to leases within the Company's previous
portfolios.
Portfolio Three
Portfolio three was acquired for a total consideration of
GBP1,633,667, comprising 12 tenancies within 4 properties. The
properties are situated in the North of England within 3 different
local authority areas. Each property is 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 +1 % over the full period. Trinity is a
Registered Provider, regulated by the HCA and a counterparty to
leases within the Company's previous portfolios.
The properties in all three portfolios have been adapted for use
as specialist supported living homes for tenants with physical
and/or mental disabilities or other needs, with tailored support in
place for tenants within each property.
The portfolios were 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.
Further to the announcement dated 18 April 2017 confirming that
the Company had exchanged contracts for the purchase of a portfolio
of regulated social housing for a total consideration of GBP11.5
million, the Board of Civitas Social Housing PLC is pleased to
announce that the Company has now completed the purchase of this
portfolio of ten properties comprising 79 tenancies.
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: +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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