Civitas invests another £22.9m – Civitas Social Housing PLC has completed the purchase of a portfolio of regulated social housing for a total consideration of GBP22.9 million, comprising the freehold interest in 21 supported living properties, with 183 tenancies, in the South West of England. 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 (“CHA”), the Company’s Investment Manager.
Each property is subject to a 25-year lease with a specialist Housing Association – Providers of Accommodation and Support Housing Association (“PASHA”) – focused around supported living, with rents established by the relevant local authority and adjusted annually by CPI+1% over the full period.
PASHA specialises in working with vulnerable people to overcome difficulties, building a better, more independent future for its tenants. It provides secure housing, education and life skills to enable independent living, facilitating interaction with and becoming part of the local community.
The properties in the portfolio have been adapted for use as specialist supported living homes for those with physical and/or mental disabilities or other needs with tailored support in place for tenants within each property.
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 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 and further, the Company promotes “additionality” by the provision of new equity capital that has the potential to be redeployed in the delivery of new social homes.
CSH : Civitas invests another £22.9m