Civitas Social Housing acquires four care properties worth £8.2m

The Board of Civitas Social Housing PLC has announced it has exchanged contracts for the purchase of four residential care properties for just over £8.2m.

The deal comprises of 53 tenancies, and the portfolio is located in the Midlands.

The portfolio is located in the Midlands and will be managed by Falcon Housing Association. Falcon is a registered provider, regulated by the Regulator of Social Housing, and is counter-party to leases within the company’s existing portfolio.

The properties are said to be immediately income-generating with an initial net yield in line with the company’s expectations.

The properties have been adapted for use as residential care accommodation for tenants with learning disabilities and additional needs, and there is a care provider in place at each property.

The properties will each be subject to a 25-year lease with rents adjusted annually in line with CPI over the full period. In due course, it is intended that leverage will be applied to this portfolio in accordance with the company’s stated policy.

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.