Civitas Social Housing PLC Acquisition (0026T)
09 October 2017 - 5:00PM
UK Regulatory
TIDMCSH
RNS Number : 0026T
Civitas Social Housing PLC
08 October 2017
9 October 2017
CIVITAS SOCIAL HOUSING PLC
("Civitas" or the "Company")
GBP8.5 million Acquisition of Three Specialist Supported Living
Investments
The Board of Civitas Social Housing PLC is pleased to announce
the Company has completed the purchase of two specialist supported
living and residential care investments for a total consideration
of GBP8.5 million, comprising the freehold interest in 5
properties, with 43 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 ("CHA"), the Company's Investment
Manager.
Investment One
Investment one was acquired for a total consideration of
GBP3,900,000, comprising 17 tenancies within 1 property. The
property is situated within the London Borough of Havering. The
property has been adapted for use as a specialist supported living
home for tenants with physical and/or mental disabilities or other
care needs, and there is a care provider in place for the
property.
Investment Two
Investment two was acquired for a total consideration of
GBP1,400,000, comprising 10 tenancies within 1 property. The
properties are situated in the West Midlands within the borough of
Walsall. The property has been adapted for use as specialist
supported living and residential care accommodation for tenants
with physical and/or mental disabilities or other needs, and there
is a care provider in place for the property.
The properties in Investment One and Investment Two are both
subject to a 25-year leases 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 Homes
and Communities Agency and a counterparty to leases within the
Company's previous portfolios.
Investment Three
Investment three was acquired for a total consideration of
GBP3,200,000, comprising 16 tenancies within 3 properties. The
properties are situated in the West Midlands within Worcestershire.
The properties have been adapted for use as specialist supported
living for tenants with care needs, and there is a care provider in
place for the property.
These properties are subject to a 25-year lease with a
specialist Housing Association - Falcon Housing Association C.I.C.
focused around specialist supported living, with rents established
by the relevant Local Authority and adjusted annually in line with
CPI over the full period. Falcon Housing Association C.I.C. is a
Registered Provider, regulated by the Homes and Communities Agency
and a counterparty to leases within the Company's previous
portfolios.
The investments 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.
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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