£8.2m acquisition of four residential care properties
£8.2 million acquisition of four residential care properties
The Board of Civitas Social Housing PLC is pleased to announce that the Company has exchanged contracts (with completion expected shortly) for the purchase of four residential care properties for a total consideration of £8,243,776.67 , comprising 53 tenancies. The portfolio is located in the Midlands and will be managed by Falcon Housing Association. Falcon is registered provider, regulated by the Regulator of Social Housing, and is counterparty to leases within the Company’s existing portfolio.
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 residential care accommodation for tenants with learning disabilities and additional needs, and there is a care provider in place at each property. The properties will each be subject to a 25-year lease 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.
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.