Civitas Social Housing (CSH) has announced that it has completed the purchase of a portfolio of regulated social housing for a total consideration of £2.0 million, comprising the freehold interest in 6 supported living properties, with 12 tenancies, in Southampton. CSH says that the portfolio is immediately income generating with an initial net yield in line with the Company’s expectations and was sourced off-market by Civitas Housing Advisors Limited, the Company’s Investment Manager. The portfolio was funded through the Company’s cash resources. In due course, it is intended that leverage will be applied in accordance with the Company’s stated policy and it is expected that this will further enhance the yield achieved from this investment.
The Southampton supported living portfolio
CSH says that each property is subject to a 25-year lease with a specialist Housing Association, – Kindstream Housing CIC (“Kindstream”) – focused around supported living, with rents established by the relevant local authority and adjusted annually by inflation (CPI) over the full period. Kindstream is a Registered Provider, regulated by the Homes and Communities Agency (HCA) and a counterparty to leases within the Company’s previous portfolios.
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 provider for each property is in place.
About Civitas Social Housing
Civitas Social Housing PLC describes itself as the first Real Estate Investment Trust offering pure play exposure to social housing in England and Wales. The Company is managed by Civitas Housing Advisors Limited and is listed on the premium listing segment of the London Stock Exchange. The social homes owned by Civitas are provided on a long-term basis to Housing Associations with a wide range of tenants who vary in age profile and in the level of support that each receives. By acquiring these social homes, and working with Housing Associations, Civitas says that it seeks for tenants to experience a stable, high-quality living environment that offers good visibility of tenure.
CSH : Civitas Social Housing completes £2.0m Acquisition of Supported Living Properties