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Civitas Social Housing Acquires 61 Properties For GBP122 Million

LONDON (Alliance News) - Civitas Social Housing PLC said Wednesday that it has acquired 57 ...

Alliance News 20 December, 2017 | 9:52AM
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LONDON (Alliance News) - Civitas Social Housing PLC said Wednesday that it has acquired 57 properties for GBP116.6 million and exchanged contracts to acquire further four for GBP4.9 million.

The real estate investment company said the 57 properties already acquired comprised 405 tenancies. The four properties set to be acquired "shortly" comprise a further 22 tenancies. All 61 properties are expected to be immediately income generating and are located across the UK including in London.

Of the 61 properties, 52 have leases of 25 years with a further eight with 35 year leases. The remaining property has a 22 year lease.

The company said 49 properties have annually adjusted rents at a rate of the consumer prices index plus 1.0%. The twelve remaining properties have annually adjusted rents in line with the consumer prices index.

"The acquisition enables Civitas to provide long-term accommodation to a broadening range of underlying client groups across various defined sub-groups which now comprise: Learning Disability, Autism, Drug & Alcohol Dependency, Homelessness and NHS Step-Down", Civitas said in a statement. "This in turn strengthens the company's presence within a growing number of local authorities and other government funded organisations and enables the establishment of broadening relationships."

Civitas said the transactions will be funded through a combination of the remaining equity capital from the issue of ordinary shares as well as debt and by the use of the GBP27.6 million raised through C share issue.

"We are pleased to be able to announce the acquisition of this substantial portfolio of social housing which has enabled us to deploy fully the equity raised at the time of IPO together with all the associated debt capital secured to date", Civitas Chairman Michael Wrobel said. "In addition, we are very encouraged to have commenced the deployment of the recently raised C share capital and look forward to making further progress in this regard shortly."

Civitas raised GBP350 million in its November 2016 initial public offering. Last month, it raised a further GBP302.0 million through a C share issue and secured loans totaling GBP92.5 million.

Shares in Civitas were 0.1% lower at 112.90 pence on Wednesday.

By Ahren Lester; ahrenlester@alliancenews.com.

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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