Civitas buys 19 supported living properties

Civitas buys 19 supported living properties – the Board of Civitas Social Housing PLC has announced that the company has completed the purchase of a portfolio of regulated social housing for a total consideration of GBP15.4 million, comprising the freehold interest in 19 supported living properties, with 95 tenancies, in Yorkshire and the Humber, the East Midlands and the South West. 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 Investment Manager.

Each property is subject to a 25-year lease with one of two specialist Housing Associations – Westmoreland Supported Housing Association and IKE Supported Housing – focused around supported living, with rents established by the relevant local authority and adjusted annually by inflation (CPI) over the full period. Westmoreland and IKE are Registered Providers, 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.

The portfolio was funded through cash resources. In due course, it is intended that leverage will be applied in accordance with stated policy and it is expected that this will further enhance the yield achieved from this investment.

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 seeks for tenants to experience a stable, high-quality living environment that offers good visibility of tenure. They further promote “additionality” by the provision of new equity capital that has the potential to be redeployed in the delivery of new social homes.

CSH : Civitas buys 19 supported living properties

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