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Civitas Social Housing Buys Nine UK Properties For GBP14.6 Million

LONDON (Alliance News) - Property investor Civitas Social Housing PLC said Thursday it ...

Alliance News 1 March, 2018 | 11:47AM
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LONDON (Alliance News) - Property investor Civitas Social Housing PLC said Thursday it purchased nine residential care properties for a combined GBP14.6 million.

The properties are located in the West Midlands and are operated by Chrysalis Supported Association Ltd.

Each of the properties is subject to a 25-year lease with rents adjusted annually in line with the UK consumer prices index over the full period. All properties will generate income for Civitas immediately with a net initial yield in line with the company's expectations.

The acquisitions will be funded using the company's existing cash resources from its recent C share issue.

Civitas raised GBP350 million in its November 2016 initial public offering. In November 2017, it raised a further GBP302.0 million through a C share issue and secured loans totalling GBP92.5 million.

Civitas added it was "intended that leverage will be applied to this portfolio in accordance with the company's stated policy and it is expected that this will further enhance the yield achieved from this investment."

Shares in Civitas were 0.7% higher at 105.75 pence on Thursday.

By Ahren Lester; ahrenlester@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 88.30 GBX -0.11 -

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