11 September 2017

CIVITAS SOCIAL HOUSING PLC

(“Civitas” or the “Company“)

LEI: 213800PGBG84J8GM6F95

 

Invested Capital Exceeds £284 million and Update

Following the recent announcement of the acquisition of 11 properties for a consideration of £5.8 million the total equity invested by Civitas since IPO now exceeds £284 million (before purchase costs).

Civitas has now established a diverse portfolio of built and income generating social homes in England and Wales across 282 properties, 1,820 tenants, 10 housing associations, 82 local authorities and 50 care providers.

Civitas Housing Advisors (“CHA”) has developed a significant pipeline of further opportunities, the value of which exceeds the remaining investible equity and proposed debt finance.

At the present time the Company, through CHA, can confirm that properties with a value in excess of £160 million are under exclusivity/detailed heads of terms and it is anticipated that subject to final due diligence these will complete over coming weeks and will be funded through the Company’s remaining available cash resources and newly arranged debt financing.

The Company is pleased to confirm that it has signed detailed heads of terms for its initial debt facilities of more than £90 million with leading UK financing institutions, which have experience of lending to the social housing sector. It is anticipated that the loan facilities will be in place around the end of October on terms consistent with those anticipated at the time of IPO, subject to final agreement. These proceeds will then be deployed within the existing pipeline.

To ensure the continuity of investment beyond the immediate pipeline, CHA has continued to develop numerous off-market opportunities with various vendors for the provision of a significant number of additional built social homes of a scale greater than the amount of capital invested to date. This significant pipeline is expected to grow further over coming weeks.

As a result, and to capitalise on these new opportunities the Company is now considering its options for raising additional equity capital.

Michael Wrobel, Chairman of Civitas, commented:

“We are very pleased with the Company’s progress since IPO and are on-track to be fully invested within the timescales indicated at IPO.  In a short time, the Company has established itself as a leading owner of built social homes, providing a very considerable number of people with high quality homes that suit their particular needs on a long-term basis. Civitas now has the potential to strengthen this position further through additional investment. We are grateful for the support and encouragement of the Company’s shareholders and the hard work of the team and our advisers. ”

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

Pagefield

Philip Dennis        Tel: +44 (0)7947 868206

David Leslie          Tel: +44 (0)7584 070274

Notes:

Civitas Social Housing PLC was 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.

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.  Upon the publication of this announcement via Regulatory Information Service this inside information is now considered to be in the public domain.

 

Disclaimer

The information in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed for any purpose on the information contained in this announcement or its accuracy or completeness. The material set forth herein is for information purposes only and is not intended, and should not be construed, as an offer of securities for sale in any jurisdiction.

This announcement may include statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the Company’s control and all of which are based on the Company’s board of directors’ current beliefs and expectations about future events. These forward-looking statements may be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “plans”, “projects”, “anticipates”, “expects”, “intends”, “may”, “will” or “should” or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements reflect the Company’s current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company’s business, the results of operations, financial condition prospects, growth and dividend policy of the Company and the industry in which it operates. Forward-looking statements speak only as of the date they are made and cannot be relied upon as a guide to future performance. These forward-looking statements and other statements contained in this announcement regarding matters that are not historical facts involve predictions. No assurance can be given that such future results will be achieved; actual events or results may differ materially as a result of risks and uncertainties facing the Company. Such risks and uncertainties could cause actual results to vary materially from the future results indicated, expressed or implied in such forward-looking statements. Forward-looking statements speak only as of the date of this announcement. Certain figures contained in this announcement, including financial information, have been subject to rounding adjustments. Accordingly, in certain instances, the sum or percentage change of the numbers contained in this document may not conform exactly with the total figure given.

This announcement is directed only at: (i) persons having professional experience in matters relating to investments who fall within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005; or (ii) high net worth bodies corporate, unincorporated associations and partnerships and trustees of high value trusts as described in Article 49(2) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 and persons who receive this announcement who do not fall within (i) or (ii) above should not rely on or act upon it.

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