Civitas Social Housing acquires two new properties up North for £4.3m

The Board of Civitas Social Housing PLC has announced the company has completed the purchase of two specialist supported living properties for a total consideration of £4.3m, with 27 tenancies.

The properties are immediately income generating, in line with the company’s expectations and both were sourced off-market by Civitas Housing Advisors Limited, the group’s investment manager.

The properties are situated in Yorkshire and the North West, and have been adapted for use as specialist supported living for tenants with learning disabilities and mental health needs. There is a care provider in place at both properties.

The properties are each subject to a 25-year lease with specialist housing association Encircle Housing Limited (Encircle), with rents adjusted annually in line with CPI over the full period.

Encircle is regulated by the Regulator of Social Housing and are counterparty to leases within the company’s existing portfolio.

The properties were funded through the company’s cash resources.

In due course, it is intended that leverage will be applied to these properties in accordance with the Company’s stated policy and it is expected that this will further enhance the yield achieved from the investments.

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.

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