CIVITAS SOCIAL HOUSING PLC
(“Civitas” or the “Company”)
The Board of Civitas Social Housing PLC is pleased to announce the Company has completed the purchase of a portfolio of specialist supported living properties for a total consideration of £2,964,000, comprising the freehold interest in 3 properties, with 11 tenancies, in West Midlands and South East England. 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, the Company’s Investment Manager.
The properties are subject to 25-year leases with specialist Housing Associations Falcon Housing Association (“Falcon”) and Westmoreland Supported Housing Limited (“Westmoreland”), 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 and Westmoreland are both Registered Providers, regulated by the Homes and Communities Agency and are both counterparties to leases within the Company’s previous portfolios.
The portfolio was 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.
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.
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
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.