Civitas Social Housing PLC Acquisition (8537E)
May 11 2017 - 4:09AM
UK Regulatory
TIDMCSH
RNS Number : 8537E
Civitas Social Housing PLC
11 May 2017
11 May 2017
CIVITAS SOCIAL HOUSING PLC
("Civitas" or the "Company")
GBP2.9m Acquisition of a Portfolio of Supported Living
Properties
The Board of Civitas Social Housing PLC is pleased to announce
the Company, as part of its ongoing investment programme, has
completed the purchase of a portfolio of regulated social housing
for a total consideration of GBP2.9 million, comprising the
freehold interest in 2 supported living properties, with 18
tenancies, in Lincoln and Brighton. 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.
Both properties within the portfolio are subject to a 25-year
lease with a specialist Housing Association - Westmoreland
Supported Housing Association ("Westmoreland") - focused around
supported living, with rents established by the relevant local
authority and adjusted annually by CPI+1% over the full period.
Westmoreland 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 and further, 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 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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