Civitas Social Housing REIT has completed the purchase of two portfolios of regulated social housing for a total consideration of GBP19.3 million, comprising the freehold interest in 19 supported living properties, with 98 tenancies. The portfolios are immediately income generating with initial net yields in line with the company’s expectations and both were sourced off-market by Civitas Housing Advisors Limited (“CHA”), the Company’s Investment Manager.
Portfolio 1
Portfolio 1 was acquired for a total consideration of GBP2.6 million, comprising 15 tenancies, within 3 properties in the North West of England. Each of the properties within the portfolio is subject to a 25-year lease with a specialist Housing Association, Trinity Housing Association (“Trinity”), focused around supported living, with rents established by the relevant local authority and adjusted annually in line with inflation (CPI) over the full period. Trinity is a Registered Provider, regulated by the Homes and Communities Agency (“HCA”) and a counterparty to leases within the Company’s existing portfolios.
Portfolio 2
Portfolio 2 was acquired for a total consideration of GBP16.7 million, comprising 83 tenancies, within 16 properties in the East Midlands, West Midlands, South East, South West, East of England and Greater London. Each of the properties within the portfolio is subject to a 25-year lease with one of two specialist Housing Associations – Westmoreland and First Priority Housing Association (“First Priority”) – focused around supported living, with rents established by the relevant local authority and adjusted annually in line with inflation (CPI) over the full period. Both Housing Associations are Registered Providers, regulated by the Homes and Communities Agency (“HCA”) and are counterparties to leases within the Company’s previous portfolios.
The properties in both portfolios 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 provider for each property is in place.
Michael Wrobel, Chairman of Civitas, commented: “With the acquisition of these portfolio of properties, Civitas has successfully deployed over GBP150 million of capital into the regulated social housing sector. This is very much in line with the strategy we set out at the time of the Company’s IPO in November. As it currently stands, Civitas’ overall portfolio comprises a diverse range of social housing across England and Wales.”
CSH : Civitas Social Housing REIT adds another 19 properties