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Civitas Social Housing Buys Two Property Portfolios For GBP14 Million

LONDON (Alliance News) - Civitas Social Housing PLC announced on Friday it has agreed to ...

Alliance News 19 February, 2018 | 11:59AM
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LONDON (Alliance News) - Civitas Social Housing PLC announced on Friday it has agreed to acquire two regulated social housing portfolios, comprising of 11 properties with 69 tenancies, for GBP13.8 million.

The real estate investment trust said the purchase utilized cash resources from its C share issue in November, when Civitas raised around GBP302 million.

The properties, situated in Leicestershire and Gloucestershire, are immediately income generating, the company said, with an initial net yield in line with the Civitas' expectations, which it didn't specify. Civitas said it intends to apply leverage to the portfolio, meaning take out a loan against it, to enhance the yield from the investment.

Civitas said the properties have been adapted for use as specialist supported-living and residential-care accommodation for tenants with mental illness or other care needs, with a care provider in place.

Both portfolios were sourced off-market by Civitas Housing Advisors Ltd, Civitas's investment manager and each are subject to a 25-year lease with Trinity Housing Association, a counterparty to leases within the Civitas's previous portfolios.

Civitas shares were 0.3% down at 109.12 pence each on Monday.

By Evelina Grecenko; evelinagrecenko@alliancenews.com

Copyright 2018 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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