Triple Point Social Housing REIT Acquisitions Update (8528D)

TIDMSOHO

RNS Number : 8528D

Triple Point Social Housing REIT

02 November 2020

2 November 2020

Triple Point Social Housing REIT plc

(the "Company" or, together with its subsidiaries, the "Group")

ACQUISITIONS UPDATE

The Board of Triple Point Social Housing REIT plc (ticker: SOHO) is pleased to announce that the Group has completed the acquisition of a portfolio of five properties, comprising 74 individual units (the " Portfolio "). In addition, the Group has acquired a further six properties, comprising 59 individual units in total. The aggregate consideration paid by the Group for all these properties was approximately GBP28.9 million (excluding acquisition costs). The properties are located in the the North West (53 units), Yorkshire (22 units), the South West (18 units), West Midlands (16 units), the East of England (14 units) and East Midlands (10 units).

The Group has taken over the Portfolio's existing FRI leases, which all have a remaining term of approximately 55 years, and has entered into new FRI leases in respect of each of the further six properties acquired for periods of 20 to 25 years. The leases are with specialist charities or housing associations regulated by the Regulator of Social Housing, including Blue Square Residential, Inclusion Housing (in respect of the Portfolio), Independent Housing and Pivotal.

The rents received under these leases are subject to annual, upward-only rent reviews, increasing in line with the Consumer Price Index or, in respect of the Portfolio, the Retail Price Index.

The properties comprise specialist, high quality homes for individuals with mental health and other support and care needs.

The properties generate net initial yields in line with the Company's existing portfolio.

FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:

 
 Triple Point Investment Management       Tel: [phone] 
  LLP 
  (Investment Manager) 
 Ben Beaton 
 Max Shenkman 
 Isobel Gunn-Brown 
 
 Akur Capital (Joint Financial Adviser)   Tel: [phone] 
 Tom Frost 
 Anthony Richardson 
 Siobhan Sergeant 
 
 Stifel (Joint Financial Adviser          Tel: [phone] 
  and Corporate Broker) 
 Mark Young 
 Mark Bloomfield 
 Rajpal Padam 
 

The Company's LEI is 213800BERVBS2HFTBC58.

Further information on the Company can be found on its website at www.triplepointreit.com .

NOTES:

The Company invests in primarily newly developed social housing assets in the UK, with a particular focus on supported housing. The assets within the portfolio are subject to inflation-adjusted, long-term (typically from 20 years to 30 years), Fully Repairing and Insuring ("FRI") leases with Approved Providers (being Housing Associations, Local Authorities or other regulated organisations in receipt of direct payment from local government). The portfolio comprises investments into properties which are already subject to an FRI lease with an Approved Provider, as well as forward funding of pre-let developments but does not include any direct development or speculative development.

There is increasing political and financial pressure on Housing Associations to increase their housing delivery and this is creating opportunities for private sector investors to participate in the market. The Group's ability to provide forward financing for new developments not only enables the Company to secure fit for purpose, modern assets for its portfolio but also addresses the chronic undersupply of suitable supported housing properties in the UK at sustainable rents as well as delivering returns to investors.

The Company was admitted to trading on the Specialist Fund Segment of the Main Market of the London Stock Exchange on 8 August 2017 and was admitted to the premium segment of the Official List of the Financial Conduct Authority and migrated to trading on the premium segment of the Main Market on 27 March 2018. The Company operates as a UK Real Estate Investment Trust ("REIT") and is a constituent of the FTSE EPRA/NAREIT index.

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November 02, 2020 02:00 ET (07:00 GMT)