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Civitas Social Eyes GBP90 Million Of Debt And Mulls Raising New Equity (ALLISS)

LONDON (Alliance News) - Civitas Social Housing PLC on Monday said it has invested GBP284 ...

Alliance News 11 September, 2017 | 2:26PM
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LONDON (Alliance News) - Civitas Social Housing PLC on Monday said it has invested GBP284 million since its initial public offering following the recent announcement that it had acquired a portfolio of 11 properties for GBP5.8 million, and is now considering raising more funds.

Civitas has now established a diverse portfolio of built and income generating social homes in England and Wales across 282 properties, 1,820 tenants, 10 housing associations, 82 local authorities, and 50 care providers.

"Civitas Housing Advisors has developed a significant pipeline of further opportunities, the value of which exceeds the remaining investible equity and proposed debt finance," said the company.

"At the present time the company, through Civitas Housing Advisors, can confirm that properties with a value in excess of GBP160 million are under exclusivity/detailed heads of terms and it is anticipated that subject to final due diligence these will complete over coming weeks and will be funded through the company's remaining available cash resources and newly arranged debt financing," Civitas guided.

Civitas said it has signed heads of terms for initial debt facilities of "more than" GBP90 million, and they are expected to be in place around the end of October on terms consistent with those anticipated at the time of IPO, subject to final agreement.

"To ensure the continuity of investment beyond the immediate pipeline, Civitas Housing Association has continued to develop numerous off-market opportunities with various vendors for the provision of a significant number of additional built social homes of a scale greater than the amount of capital invested to date. This significant pipeline is expected to grow further over coming weeks," said the company.

As a result, the company is considering raising "additional equity capital".

Civitas shares were down 0.7% on Monday at 111.25 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 85.30 GBX 0.24 -

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