Civitas Social Housing acquisition
The Board of Civitas Social Housing PLC (the Board) has announcedthat the Company has completed the purchase of 2 regulated social housing properties comprising 10 tenancies for a total consideration of £1,589,468 and an exchange of a regulated social housing property comprising 14 tenancies for a total consideration of £3.1 million, completion is expected early in January 2019.
The properties are leased to Falcon Housing Association C.I.C. (Falcon), Chrysalis Supported Association Limited (Chrysalis) and Inclusion Housing C.I.C. (Inclusion) all of which are regulated by the Regulator of Social Housing and are counterparties to existing leases within the Company’s 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 adviser.
The properties have been adapted for use as accommodation for tenants with learning disabilities and other care needs, and there is a care provider in place at each property. The properties are subject to 25-year leases and rents are adjusted annually in line with CPI over the full period.
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.
Civitas notes the purchase by Michael Wrobel, Chairman of the Company of 30,000 ordinary shares and the purchase by Civitas Housing Advisers Limited, investment adviser to the Company, of 50,000 ordinary shares both in the capital of Civitas.