Civitas considering new fundraise – following the recent announcement of the acquisition of 11 properties for a consideration of GBP5.8 million the total equity invested by Civitas Social Housing REIT since IPO now exceeds GBP284 million (before purchase costs). Civitas has now established a diverse portfolio of built and income generating social homes in England and Wales across 282 properties, 1,820 tenants, 10 housing associations, 82 local authorities and 50 care providers. Civitas Housing Advisors (“CHA”) has developed a significant pipeline of further opportunities, the value of which exceeds the remaining investible equity and proposed debt finance.
At the present time properties with a value in excess of GBP160 million are under exclusivity/detailed heads of terms and it is anticipated that subject to final due diligence these will complete over coming weeks and will be funded through the remaining available cash resources and newly arranged debt financing.
Civitas has signed detailed heads of terms for its initial debt facilities of more than GBP90 million with leading UK financing institutions, which have experience of lending to the social housing sector. It is anticipated that the loan facilities will be in place around the end of October on terms consistent with those anticipated at the time of IPO, subject to final agreement. These proceeds will then be deployed within the existing pipeline.
To ensure the continuity of investment beyond the immediate pipeline, CHA has continued to develop numerous off-market opportunities with various vendors for the provision of a significant number of additional built social homes of a scale greater than the amount of capital invested to date. This significant pipeline is expected to grow further over coming weeks. As a result, and to capitalise on these new opportunities the company is now considering its options for raising additional equity capital.
Michael Wrobel, Chairman of Civitas, commented: “We are very pleased with the Company’s progress since IPO and are on-track to be fully invested within the timescales indicated at IPO. In a short time, the Company has established itself as a leading owner of built social homes, providing a very considerable number of people with high quality homes that suit their particular needs on a long-term basis. Civitas now has the potential to strengthen this position further through additional investment. We are grateful for the support and encouragement of the Company’s shareholders and the hard work of the team and our advisers. ”
CSH : Civitas considering new fundraise