CIVITAS SOCIAL HOUSING PLC

(“Civitas” or the “Company“)

The Board of Civitas Social Housing PLC is pleased to announce that the Company has exchanged and completed upon the acquisition of 28 supported living properties in London, the Midlands and Southern England, and exchanged (with completion subject to landlord consent) on one additional property (together, the “Portfolio”). The Company was granted exclusivity on the Portfolio, it having been 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 two specialist housing associations – First Priority Housing Association and Westmoreland Supported Housing Association – focused around supported living, with rents underpinned by the relevant local authority and adjusted annually in line with CPI+1% over the full period.

First Priority is a registered provider, regulated by the Homes and Communities Agency (HCA) and specialising in the provision of housing for vulnerable adults, helping to promote independent living where possible.

Westmoreland is a registered provider, regulated by the HCA and specialising in the provision of housing for people with learning and physical disabilities.

The properties in the Portfolio have been adapted for use as specialist supported living homes for tenants with physical and/or mental disabilities or other care needs, and a care operator for each property is in place.

In accordance with the lease terms, the Portfolio is expected to be immediately income producing with an initial net yield of 5.8%1 based on the purchase price of £65 million (excluding purchase costs). 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.

The Portfolio will be funded through the Company’s cash resources.

Michael Wrobel, Chairman of Civitas, commented:

“We are pleased to have completed our first investment quickly after IPO and to have acquired a diversified portfolio of supported living properties. This transaction is expected to deliver an excellent return for our shareholders with the potential for growth in future income and provides superior long term housing for 225 residents across the portfolio”.

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