Civitas expands portfolio – Civitas Social Housing PLC has completed the purchase of two specialist supported living and residential care investments for a total consideration of £8.5 million, comprising the freehold interest in 5 properties, with 43 tenancies. The properties are immediately income generating with an initial net yield in line with the Company’s expectations and both were sourced off-market by the investment manager.
Investment One
Investment one was acquired for a total consideration of £3,900,000, comprising 17 tenancies within 1 property. The property is situated within the London Borough of Havering. The property has been adapted for use as a specialist supported living home for tenants with physical and/or mental disabilities or other care needs, and there is a care provider in place for the property.
Investment Two
Investment two was acquired for a total consideration of £1,400,000, comprising 10 tenancies within 1 property. The properties are situated in the West Midlands within the borough of Walsall. The property has been adapted for use as specialist supported living and residential care accommodation for tenants with physical and/or mental disabilities or other needs, and there is a care provider in place for the property.
The properties in Investment One and Investment Two are both subject to a 25-year leases 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 over the full period. Trinity is a Registered Provider, regulated by the Homes and Communities Agency and a counterparty to leases within the Company’s previous portfolios.
Investment Three
Investment three was acquired for a total consideration of £3,200,000, comprising 16 tenancies within 3 properties. The properties are situated in the West Midlands within Worcestershire. The properties have been adapted for use as specialist supported living for tenants with care needs, and there is a care provider in place for the property.
These properties are subject to a 25-year lease with a specialist Housing Association – Falcon Housing Association C.I.C. focused around specialist supported living, with rents established by the relevant Local Authority and adjusted annually in line with CPI over the full period. Falcon Housing Association C.I.C. is a Registered Provider, regulated by the Homes and Communities Agency and a counterparty to leases within the Company’s previous portfolios.
The investments were 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.
CSH : Civitas expands portfolio