Civitas secures a £3.9m portfolio acquisition in South West England

The Board of Civitas Social Housing plc (Civitas) has announced its completion on the purchase of a portfolio of supported living accommodation for a total of £3.9m, comprising the freehold interest in four properties, with 30 tenancies, in the South West of 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 business’ investment manager.

Each property is subject to a 25-year lease with specialists, Housing Association: Providers of Accommodation and Support Housing Association (PASHA), focused around supported living, with rents established by the relevant local authority and adjusted annually by CPI plus 1 per cent over the full period.

PASHA is a registered provider, regulated by the Homes and Communities Agency and a counterparty to leases within the company’s previous portfolios.

The properties in the portfolio have been adapted for use as specialist supported living homes for tenants with physical and/or mental disabilities or other needs, with tailored support in place for tenants within each property.

The portfolio was funded through Civitas’ cash resources, and it is eventually 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.

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

Civitas is the first Real Estate Investment Trust offering pure play exposure to social housing in England and Wales, and is managed by Civitas Housing Advisors Limited.

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