£32m acquisition for Civitas Social Housing PLC
£32 million acquisition of four regulated social housing properties
The Board of Civitas Social Housing PLC is pleased to announce that the Company has completed the purchase of four regulated social housing properties for a total consideration of £31,894,205, comprising 92 tenancies and places. The majority of the beds are leased to Auckland Home Solutions (“Auckland”), a new Registered Provider for Civitas. Auckland provide accommodation for social housing and housing support to vulnerable adults in the north east of England. The remaining beds are leased to Falcon Housing Association C.I.C. (“Falcon”), a counterparty to existing leases within the Civitas portfolio. Falcon and Auckland are both 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 supported living accommodation for tenants with learning disabilities and other mental health 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 acquisitions were funded through the Company’s cash resources from the Company’s 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.
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.