Civitas Social Housing acquires 61 properties – The board of Civitas Social Housing says it has completed the acquisition of 57 properties, comprising 405 tenancies or places, for a total consideration of GBP116.6 million. The company has also exchanged contracts (with completion expected shortly) for the acquisition of 4 properties, comprising 22 tenancies for a consideration of GBP4.9 million.
The freehold properties are located across various geographic regions including a presence in the London area and are immediately income generating, with a net initial yield in line with the company’s expectations. They were secured off-market by Civitas Housing Advisors Limited, the investment manager.
The properties are subject to long-term leases of either 25 years or 35 years (save for one property with a lease of 22 years), adjusted annually in line with CPI or CPI+1 over the period.
The counterparties to the leases are all regulated Housing Associations and comprise; First Priority Housing Association, Falcon Housing Association C.I.C, Westmoreland Supported Housing Limited and Inclusion Housing C.I.C each of whom have been a counterparty to leases within the company’s previous portfolios.
The acquisition enables Civitas to provide long-term accommodation to a broadening range of underlying client groups across various defined sub-groups which now comprise; Learning Disability, Autism, Drug & Alcohol Dependency, Homelessness and NHS Step-Down. This in turn strengthens the Company’s presence within a growing number of local authorities and other government funded organisations and enables the establishment of broadening relationships.
These transactions were funded through a combination of the company’s remaining available equity capital represented by the company’s issued ordinary shares and associated debt finance and by the deployment of GBP27.6 million of capital from the company’s recently issued C shares.
CSH / CSHC : Civitas Social Housing acquires 61 properties