Civitas Social Housing PLC Acquisition (0618A)

TIDMCSH

RNS Number : 0618A

Civitas Social Housing PLC

07 September 2018

(7th) September 2018

CIVITAS SOCIAL HOUSING PLC

("Civitas" or the "Company")

GBP38.3 million acquisition of eight regulated social housing properties

The Board of Civitas Social Housing PLC is pleased to announce that the Company has completed the purchase of eight regulated social housing properties for a total consideration of GBP38,270,000, comprising 126 residencies. The four largest properties are leased to Auckland Home Solutions ("Auckland"), and the remaining four to Falcon Housing Association ("Falcon"). Both Auckland and Falcon are regulated by the Regulator of Social Housing, and are counterparties to existing leases within the Company's portfolio.

The properties will be immediately income-generating with an initial net yield in line with the Company's expectations and were sourced off-market by Civitas Housing Advisors Limited, the Company's investment manager.

The properties are subject to adaptation for use by tenants with mental health and other care needs. There is a care provider in place at each property. The properties are subject to 25-year leases with Auckland and Falcon respectively and rents are adjusted annually in line with CPI over the full period.

The acquisitions were funded through the Company's cash resources from the Company's C Share, of which GBP209 million (before purchase costs) has now been invested. In due course following conversion of the C share, it is intended that leverage will be applied to this portfolio in accordance with the Company's stated policy and it is expected that this will further enhance the yield achieved from this investment.

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 news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

ACQUNUARWAAKRUR

(END) Dow Jones Newswires

September 07, 2018 02:00 ET (06:00 GMT)