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Civitas Social Housing Buys Three Portfolios For GBP5.8 Million

LONDON (Alliance News) - Civitas Social Housing PLC on Tuesday said it has acquired three ...

Alliance News 5 September, 2017 | 10:09AM
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LONDON (Alliance News) - Civitas Social Housing PLC on Tuesday said it has acquired three portfolios of specialist supported-living properties for a total of GBP5.8 million.

The portfolios include the freehold interest in 11 properties, with 52 tenancies and the assets are immediately income generating with an initial net yield in line with the company's expectations, it said.

The first portfolio was purchased for GBP2.4 million and comprises of 25 tenancies within six properties situated across the country within six different local authority areas. Each property is subject to a 22-year lease with housing association Inclusion Housing CIC. Rents are established by the relevant local authority and adjusted annually in line with CPI over the full period.

The second portfolio was purchased for GBP1.8 million and comprises 15 tenancies in a single property in the south-west of England. The property is subject to a 25 year lease with Providers of Accommodation & Support Housing Association. Rent will adjust in line with CPI plus 1% over the lease.

The third and final portfolio comprised of 12 tenancies within four properties was bought for GBP1.6 million. Based in the north of England within three different local authority areas, the properties are subject to a 25 year lease with Trinity Housing Association, with rent adjusted in line with CPI plus 1%.

"The properties in all three portfolios have been adapted for use as specialist supported living homes for tenants with physical and/or mental disabilities or other needs, with tailored support in place for tenants within each property," said Civitas.

"The portfolios were funded through the company's cash resources. In due course, it is intended that leverage will be applied in accordance with the company's stated policy and it is expected that this will further enhance the yield achieved from this investment," Civitas added.

Civitas also confirmed it has completed the acquisition of a portfolio of regulated social housing for a total consideration of GBP11.5 million that was first announced on April 18, covering 10 properties comprising 79 tenancies.

Civitas shares were up 0.8% on Tuesday at 112.37 pence.

By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance

Copyright 2017 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Civitas Social Housing Ord 88.30 GBX -0.11 -

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