Civitas Social Housing (Civitas) has announced that it has completed a £15m acquisition of a portfolio, with an initial net yield of 6.5%, comprising the freehold interest in 17 supported living properties in Gloucester, Weston-Super-Mare, the Wirral and Durham. The acquisition is the company’s second since its IPO and the portfolio provides long term housing for 120 residents. The company says that the portfolio was sourced off-market by Civitas Housing Advisors Limited, the Company’s Investment Adviser. The company says that each of the properties within the Portfolio is subject to a 25-year lease arrangement with one of two specialist housing associations – Westmoreland Supported Housing Association (Westmoreland) and IKE Supported Housing Limited (IKE). Each property is focused around supported living, with rents agreed by the relevant local authority and adjusted annually in line with inflation (CPI) over the full lease period.
The properties in the portfolio have been adapted for use as specialist supported living homes for tenants with physical and/or mental disabilities or other care needs, and a care operator for each property is in place. Westmoreland is a registered provider, regulated by the Homes and Communities Agency (HCA), and specialising in the provision of housing for people with learning and physical disabilities. IKE is a registered provider, regulated by the HCA and specialising in the provision of housing for adults with learning difficulties and autism/ASD.
Civitas says that the Portfolio is immediately income producing with an initial net yield of 6.5% based on the purchase price of £15 million, excluding purchase costs. Civitas says that this reflects the regional location of the properties and the nature of the tenant services provided. Civitas says that it is its intention to introduce leverage in due course and it is expected that this will further enhance the yield achieved from this investment.
Civitas Social Housing acquires supported living portfolio for £15m : CSH