CIVITAS SOCIAL HOUSING PLC
(“Civitas” or the “Company“)
The Board of Civitas Social Housing PLC is pleased to announce it has completed the purchase of five specialist supported living and residential care properties for a total consideration of £6.7 million (“the portfolio”). The portfolio includes four residential care properties in Kent, managed by Chrysalis Supported Association Limited (“Chrysalis”), which is regulated by the HCA, and one specialist supported living property in Luton, managed by Falcon Housing Association, also regulated by the HCA.
This portfolio was sourced off-market by Civitas Housing Advisors Limited (“CHA”), the Company’s Investment Adviser.
The residential care properties in this portfolio are already being used to deliver care and the existing provider will continue to support residents.
On completion, all five properties will immediately generate income with an initial net yield in line with the Company’s expectations, based on the purchase price (excluding purchase costs).
Each of the properties within the Portfolio is subject to a 25-year lease arrangement with rents adjusted annually in line with CPI over the full period.
Chrysalis is a housing association specialising in renting and operating social housing for people with support needs. It provides principally specialist supported accommodation designed to meet a range of housing needs for adults with learning disabilities and mental illness. The Company is pleased to be working with Chrysalis for the first time with these properties. Falcon is a registered provider, regulated by the Homes and Communities Agency and is a counterparty to leases within the Company’s previous portfolios.
The acquisitions 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.
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
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.Download PDF