Civitas Social Housing PLC Acquisition (0868Z)
March 10 2017 - 2:00AM
UK Regulatory
TIDMCSH
RNS Number : 0868Z
Civitas Social Housing PLC
10 March 2017
10 March 2017
CIVITAS SOCIAL HOUSING PLC
("Civitas" or the "Company")
GBP9.1m Acquisition of a Supported Living Property Portfolio
The Board of Civitas Social Housing PLC is pleased to announce
that the Company has completed a GBP9.1 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 GBP9.1 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
Pagefield
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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