Civitas completes £22.9m purchase of social housing for vulnerable tenants

The Board of Civitas Social Housing plc has completed the purchase of a regulatory social housing portfolio for a total consideration of £22.9m.

The properties are in the South-West of England, comprising of 183 tenancies in 21 supported living properties. The portfolio is immediately income generative and was sourced off-market by Civitas Housing Advisors (CHA), the company’s investment manager.

Each individual property is subject to a 25-year lease with a specialist housing association, focusing on supported living with rents established by the relevant local authority and adjusted annually.

This association works with vulnerable people to overcome difficulties, building more independent futures for its tenants and provides secure housing, education and vital life skills to enable its residents are living well and their facilities and local community are easily accessible.

The properties are specifically for those living with physical and/or mental disabilities or others who need tailored support.

The portfolio was funded through the company’s cash resources and is intended to be applied in accordance with the company’s stated policy, expecting to further enhance the yield achieved from this investment.

The tenants vary in age profile and in the level of support each receives. By acquiring these social homes and working with PASHA, Civita seeks to experience a stable environment for these tenants.

Civitas Social Housing plc is the first Real Estate Investment Trust offering exposure to social housing in England and Wales, with an objective to deliver sustainable returns to its shareholders by making relevant investments with the regulated social housing sector.

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