Civitas Social Housing PLC Acquisition (7788K)

TIDMCSH

RNS Number : 7788K

Civitas Social Housing PLC

12 July 2017

12 July 2017

CIVITAS SOCIAL HOUSING PLC

("Civitas" or the "Company")

GBP18.5m Acquisition of a Portfolio of Regulated Social Housing

The Board of Civitas Social Housing PLC is pleased to announce the Company has completed the purchase of a portfolio of regulated social housing for a total consideration of GBP18.5 million, comprising the freehold interest in 41 properties, with 194 tenancies, in North East England. The portfolio is immediately income generating with an initial net yield in line with the Company's expectations and was sourced off-market by Civitas Housing Advisors Limited ("CHA"), the Company's Investment Manager.

Each property is subject to a 25-year lease with a specialist Housing Association - New Walk CIC ("New Walk") - with rents established by the relevant local authority and adjusted annually in line with CPI +1% over the full period.

New Walk is a Registered Provider, regulated by the Homes and Communities Agency ("HCA"), specialising in providing supported, safe accommodation for vulnerable adults who, with appropriate support and stable housing, have the chance to improve their lives and become more independent. The accommodation is developed around this objective.

The portfolio was 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.

The social homes owned by Civitas are provided on a long-term basis to Housing Associations with a wide range of tenants who vary in age profile and in the level of support that each receives.

By acquiring these social homes, and working with Housing Associations, Civitas seeks for tenants to experience a stable, high-quality living environment that offers good visibility of tenure. The Company further promotes "additionality" by the provision of new equity capital that has the potential to be redeployed in the delivery of new social homes.

Civitas targets the objective of delivering sustainable returns to its shareholders by making socially relevant investments within the regulated social housing sector in England and Wales.

For further information, please contact:

Civitas Housing Advisors Limited

   Paul Bridge                           Tel: [phone] 
   Andrew Dawber                   Tel: [phone] 

Cenkos Securities PLC

   Sapna Shah                           Tel: [phone] 
   Tom Scrivens                        Tel: [phone] 

Pagefield

   Philip Dennis                       Tel: [phone] 
   David Leslie                          Tel: [phone] 

Notes:

Civitas Social Housing PLC is the first Real Estate Investment Trust offering pure play exposure to social housing in England and Wales. The Company is managed by Civitas Housing Advisors Limited. The Company is listed on the premium listing segment of the Official List of the Financial Conduct Authority and was admitted to trading on the main market for listed securities of the London Stock Exchange in November 2016.

This information is provided by RNS

The company news service from the London Stock Exchange

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July 12, 2017 02:00 ET (06:00 GMT)