CIVITAS SOCIAL HOUSING PLC
(“Civitas” or the “Company“)
The Board of Civitas Social Housing PLC is pleased to announce that the Company has completed a £9.1 million acquisition of a portfolio, with an initial net yield of 6.0%, comprising the freehold or long leasehold interest in 20 supported living properties, with a total of 51 tenancies, across the country (north-east, north-west, south-west, Wales and London) (the “Portfolio”). The Portfolio was sourced off-market by Civitas Housing Advisors Limited (“CHA”), the Company’s investment adviser.
Each of the properties within the Portfolio is subject to a 25-year lease arrangement with one of three specialist housing associations – Westmoreland Supported Housing Association (“Westmoreland”), IKE Supported Housing Limited (“IKE”) and Hilldale Housing Association (“Hilldale”) – focused around supported living, with rents agreed by the relevant local authority and adjusted annually in line with inflation (CPI) over the full period.
The three housing associations are all registered providers, regulated by the Homes and Communities Agency (“HCA”).
Hilldale specialises in supported accommodation for adults with acute learning difficulties and physical impairments in partnership with appropriate care providers. Hilldale has a substantial focus on Wigan and surrounding areas.
Westmoreland and IKE are counterparties to leases on the Company’s previous portfolios. Westmoreland specialises in the provision of housing for people with learning and physical disabilities, and IKE focuses on the provision of housing for adults with learning difficulties and autism/ASD.
The properties in the Portfolio are 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.
In accordance with the lease terms, the entire Portfolio is immediately income-producing on the basis of an initial net yield of 6.0% based on the purchase price of £9.1 million (excluding purchase costs), which itself reflects the location of the properties and the nature of the tenant services provided.
It is intended that in due course leverage will be applied to the Portfolio in accordance with the Company’s stated policy and it is expected that this will further enhance the yield achieved from this investment.
This and earlier acquisitions are intended to be part of a longer-term programme of asset purchases to enable Civitas to build a nationally based, diversified portfolio of supported living properties in England and Wales, alongside a portfolio of general needs properties, and to become a leading investor in the sector. The Company expects to announce the acquisition of further portfolios in the near future.
The Portfolio will be funded through the Company’s cash resources.
For further information, please contact:
Civitas Housing Advisors Limited
Paul Bridge, CEO Tel: +44 (0)20 3709 4622
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.