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Civitas Social Housing Acquires Five Specialist Supported Living Properties in UK
Thursday 11 January 2018

11 January 2018 - UK-based social housing REIT Civitas Social Housing plc (LSE: CSH) has completed the purchase of five specialist supported living and residential care properties for a total consideration of GBP 6.7m (USD 9.05m), the company said.

The portfolio includes four residential care properties in Kent, managed by Chrysalis Supported Association Ltd., which is regulated by the HCA, and one specialist supported living property in Luton, managed by Falcon Housing Association, also regulated by the HCA.

This portfolio was sourced off-market by Civitas Housing Advisors Ltd., the company's Investment Adviser.

The residential care properties in this portfolio are already being used to deliver care and the existing provider will continue to support residents.

On completion, all five properties will immediately generate income with an initial net yield in line with the company's expectations, based on the purchase price (excluding purchase costs).

Each of the properties within the portfolio is subject to a 25-year lease arrangement with rents adjusted annually in line with CPI over the full period.

Chrysalis is a housing association specialising in renting and operating social housing for people with support needs.

It provides principally specialist supported accommodation designed to meet a range of housing needs for adults with learning disabilities and mental illness.

The company is pleased to be working with Chrysalis for the first time with these properties.

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

The acquisitions were funded through the company's cash resources from the company's recently issued C Share.

In due course, it is intended that leverage will be applied to this portfolio in accordance with the company's said policy.

The social homes owned by Civitas are provided on a long-term basis to housing associations with a wide range of tenants who vary in age profile and in the level of support that each receives.
Date Published: 11/01/2018
Target: Five specialist supported living and residential care properties
Country: UK
Deal Size: 9.05m (USD)
Sector: Construction/Real Estate
Type: LBO
Financing: Cash
Status: Closed
Buyer: Civitas Social Housing