August 28, 2018 Finance

Civitas Social Housing PLC £37.6m acquisition



£37.6 million acquisition of 67 regulated social housing properties
The Board of Civitas Social Housing PLC is pleased to announce that the Company has completed the purchase of a portfolio of regulated social housing for a total consideration of £37.6 million, comprising the freehold and long leasehold interest in 67 properties, with 362 tenancies, located across England.

The properties will be managed by Bespoke Supportive Tenancies Ltd (“BeST”) and My Space Housing Solutions (“MySpace”). BeST is a registered provider, regulated by the Regulator of Social Housing, and is counterparty to leases within the Company’s existing portfolio. MySpace is a new Registered Provider for Civitas, providing accommodation for vulnerable adults across the country which they tailor to the needs of their tenants. MySpace is regulated by the Regulator of Social Housing, and is registered with the Charities Commission.

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 are subject to long term leases and have been adapted for use as supported living homes for tenants with physical and/or mental disabilities or other needs, and support is in place for tenants at each property.

The transaction was funded through the deployment of £10.8 million from Company’s available debt finance resulting from the increase in the revolving credit loan facility, announced on 12 June 2018, which is secured against properties in the Ordinary Share class – and by the deployment of £26.8 million from the Company’s more recently issued C Share capital. To the extent not already applied, it is intended that additional leverage will be applied in due course 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.


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