CIVITAS SOCIAL HOUSING PLC

(“Civitas” or the “Company“) 

£14.6 million acquisition of regulated social housing portfolio  

The Board of Civitas Social Housing PLC is pleased to announce that the Company has completed the purchase of a regulated social housing portfolio of 9 properties for a total consideration of £14,595,082, with 63 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, the Company’s Investment Manager.

The properties are situated in the West Midlands and have been adapted for use as residential care accommodation for tenants with learning disabilities and additional needs, and there is a care provider in place.

The properties are each subject to a 25-year lease with a specialist housing association – Chrysalis Supported Association Ltd. (“Chrysalis“) – focused on specialist supported living, with rents adjusted annually in line with CPI over the full period.  Chrysalis is a registered provider, regulated by the Regulator of Social Housing, and a counterparty to leases within the Company’s existing portfolio.

The portfolios were funded through the Company’s cash resources from the Company’s recently issued C share. In due course, it is intended that leverage will be applied to this portfolio 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 3058 4844

Andrew Dawber                  Tel: +44 (0)20 3058 4846

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.