August 6, 2018 Finance, Property

Civitas Social Housing PLC Acquisitions

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£3.9 million acquisition of two Specialist Supported Living properties and one Registered Care property
The Board of Civitas Social Housing PLC is pleased to announce that the Company has completed the purchase of two specialist supported living properties and one registered care property for a total consideration of £3,880,288, comprising 15 tenancies. The specialist supported living properties will be managed by Inclusion Housing C.I.C. and Falcon Housing Association C.I.C., both Inclusion and Falcon are counterparties to leases within the Company’s existing portfolio. The registered care property will be managed by Bespoke Supportive Tenancies Ltd, a new Regisetred Provider for Civitas. BeST provide accommodation for vulnerable adults across the country which they tailor to the needs of their tenants and are registered with the Charities Commission. Inclusion, Falcon and BeST are all Registered Providers, regulated by the Regulator of Social Housing.

The properties will be immediately income-generating with an initial net yield in line with the Company’s expectations and were sourced off-market by Civitas Housing Advisors Limited, the Company’s investment manager.

The properties have been adapted for use as specialist supported living and residential care accommodation for tenants with LD, autism and other care needs, and there is a care provider in place at each property. The properties are subject to 25-year leases with rents adjusted annually in line with CPI over the full period.

The portfolio was 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 and it is expected that this will further enhance the yield achieved from this investment.

As noted previously, the Company is targeting several other significant transactions to be announced shortly and which have been subject to ongoing due diligene. In particular, the Company expects to complete a number of material acquisitions in the near term with an expected value of circa £100m.

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.

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