Civitas Social Housing PLC Acquisition (8917Z)
December 20 2017 - 1:00AM
UK Regulatory
TIDMCSH
RNS Number : 8917Z
Civitas Social Housing PLC
20 December 2017
20(th) December 2017
CIVITAS SOCIAL HOUSING PLC
("Civitas" or the "Company")
GBP121.5 million Acquisition of Specialist Supported Living and
Mental Health Properties
The Board of Civitas Social Housing PLC is pleased to announce
that the Company has completed the acquisition of 57 properties,
comprising 405 tenancies or places, for a total consideration of
GBP116.6 million. The Company has also exchanged contracts (with
completion expected shortly) for the acquisition of 4 properties,
comprising 22 tenancies for a consideration of GBP4.9 million.
This builds upon the Company's existing portfolio of specialist
supported living properties and diversifies further the range of
underlying tenancies or places, each within the regulated social
housing sector in England and Wales and each managed by a regulated
Housing Association under a long-term indexed lease.
The freehold properties are located across various geographic
regions including a presence in the London area and are immediately
income generating, with a net initial yield in line with the
Company's expectations. They were secured off-market by Civitas
Housing Advisors Limited, the Company's Investment Manager.
The properties are subject to long-term leases of either 25
years or 35 years (save for one property with a lease of 22 years),
adjusted annually in line with CPI or CPI+1 over the period and as
more fully set out below:
Lease Length 22yrs 25yrs 35yrs
=================== ====== ====== ======
No. of Properties 1 52 8
------------------- ------ ------ ------
Indexation CPI CPI+1
=================== ====== ==============
No. of Properties 12 49
------------------- ------ --------------
The counterparties to the leases are all regulated Housing
Associations and comprise; First Priority Housing Association,
Falcon Housing Association C.I.C, Westmoreland Supported Housing
Limited and Inclusion Housing C.I.C each of whom have been a
counterparty to leases within the Company's previous
portfolios.
The acquisition enables Civitas to provide long-term
accommodation to a broadening range of underlying client groups
across various defined sub-groups which now comprise; Learning
Disability, Autism, Drug & Alcohol Dependency, Homelessness and
NHS Step-Down. This in turn strengthens the Company's presence
within a growing number of local authorities and other government
funded organisations and enables the establishment of broadening
relationships.
These transactions were funded through a combination of the
Company's remaining available equity capital represented by the
Company's issued Ordinary Shares and associated debt finance and by
the deployment of GBP27.6 million of capital from the Company's
recently issued C Share.
In addition to this transaction, Civitas Housing Advisors
continues to undertake due diligence on additional transactions
within its extensive pipeline of investment opportunities and to
consider new potential transactions that today have not formed part
of this extensive pipeline. Further announcements are expected to
be made shortly.
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.
Michael Wrobel, Chairman of Civitas, commented: "We are pleased
to be able to announce the acquisition of this substantial
portfolio of social housing which has enabled us to deploy fully
the equity raised at the time of IPO together with all the
associated debt capital secured to date. In addition, we are very
encouraged to have commenced the deployment of the recently raised
'C share' capital and look forward to making further progress in
this regard shortly."
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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