Civitas acquires eight regulated social housing properties
Civitas Social Housing
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16:40 03/08/23
Civitas Social Housing has completed the purchase of eight regulated social housing properties for a total consideration of £38.27m, comprising 126 residencies, it announced on Friday.
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The London-listed firm said the four largest properties were leased to Auckland Home Solutions, and the remaining four to Falcon Housing Association.
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 would be immediately income-generating, with an initial net yield in line with the board’s expectations, and were sourced off-market by Civitas Housing Advisors - the company’s investment manager.
Civitas said the properties were subject to adaptation for use by tenants with mental health and other care needs.
There was a care provider in place at each property, with the properties subject to 25-year leases with Auckland and Falcon respectively and rents 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 £209m before purchase costs has now been invested,” the board said in its statement.
“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.”