Civitas adds three supported living portfolios – Civitas Social Housing REIT has completed the purchase of three portfolios of specialist supported living for a total consideration of GBP5.8 million, comprising the freehold interest in 11 properties, with 52 tenancies. The portfolios are immediately income generating with an initial net yield in line with expectations and all three were sourced off-market by Civitas Housing Advisors Limited, the Investment Manager.
Portfolio One
Portfolio one was acquired for a total consideration of GBP2,375,000, comprising 25 tenancies within 6 properties. The properties are situated across the country within 6 different local authority areas. Each property is subject to a 22-year lease with a specialist Housing Association – Inclusion Housing CIC (“Inclusion”) – focused around specialist supported living, with rents established by the relevant local authority and adjusted annually in line with CPI over the full period. Inclusion is a Registered Provider, regulated by the Homes and Communities Agency (“HCA”) and a counterparty to leases within the Company’s previous portfolios.
Portfolio Two
Portfolio two was acquired for a total consideration of GBP1,767,999, comprising 15 tenancies within a single property. The property is situated in the South West of England. This 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 is a Registered Provider, regulated by the HCA and a counterparty to leases within the Company’s previous portfolios.
Portfolio Three
Portfolio three was acquired for a total consideration of GBP1,633,667, comprising 12 tenancies within 4 properties. The properties are situated in the North of England within 3 different local authority areas. Each property is subject to a 25 year lease with a specialist Housing Association – Trinity Housing Association (“Trinity”) – focused around specialist supported living, with rents established by the relevant local authority and adjusted annually in line with CPI +1 % over the full period. Trinity is a Registered Provider, regulated by the HCA and a counterparty to leases within the Company’s previous portfolios.
The properties in all three portfolios have been adapted for use as specialist supported living homes for tenants with physical and/or mental disabilities or other needs, with tailored support in place for tenants within each property.
The portfolios were funded through the existing cash resources. In due course, it is intended that leverage will be applied in accordance with the stated policy and it is expected that this will further enhance the yield achieved from this investment.
Further to the announcement dated 18 April 2017, the company has now completed the purchase of this portfolio of ten properties comprising 79 tenancies.
CSH : Civitas adds three supported living portfolios