Triple Point Social Housing fully invested and ready to expand again – Triple Point Social Housing REIT has completed the acquisition of five supported housing properties, exchanged contracts on one further supported housing property, and has acquired the land and entered into forward funding arrangements to develop another supported housing scheme, comprising 38 units in total, for an aggregate commitment of GBP6.2 million (excluding costs). The properties are located in the North West (5 units), Yorkshire (3 units), the West Midlands (20 units), the East Midlands (3 units), the South West (3 units) and the South East (4 units).
Each of the properties (other than the exchanged and forward funded assets) is now let, under fully repairing and insuring (FRI) leases, for a minimum period of 20 years with the ability to extend to 25 years. These leases are with specialist housing associations with whom the company has contracted previously, namely Chrysalis Supported Association, Falcon Housing Association and Hilldale Housing Association. In relation to the exchanged and forward funded assets, the Group will enter into new FRI leases with Auckland Home Solutions and Hilldale Housing Association on practical completion of each scheme, for a period of 20 years with the ability to extend to 25 years. All the housing associations are regulated by the Regulator of Social Housing.
The rents received under the leases are (or will be, in the case of the exchanged and forward funded assets) subject to annual, upward-only rent reviews, increasing in line with the Consumer Price Index. Over the period of construction of the forward funded asset, SOHO will accrue a coupon from the developer.
The properties comprise specialist, high quality homes refurbished for individuals with mental health and other support and care needs.
Deployment Update
Triple Point Investment Management LLP has access to a significant pipeline of potential investments and is currently engaged in discussions with various parties in relation to a number of assets that it would like to buy for the fund.
The company expects to have substantially invested or committed the proceeds of its recent debt raise (announced on 23 July 2018) by the end of October and therefore intends to undertake a further issue of equity by way of a placing, open offer and offer for subscription shortly. A prospectus should be published in mid-September following publication of the interim accounts for the half year to 30 June 2018.
SOHO : Triple Point Social Housing fully invested and ready to expand again