Two supported living properties in Stockport sold for £4.8m

Civitas Social Housing has bought two supported living properties in Stockport for £4.8m.

The firm announced it has completed the purchase of two investments of specialist supported living properties for a total of £6.4 million.

The first is made up of two properties in Stockport containing 31 tenancies.

The units are managed by Encircle Housing, a new housing association for Civitas.

The properties are already established as supported living accommodation for tenants with mental health needs, and there is a care provider in place.

They are subject to a 25-year lease with rents adjusted annually over the full period.

Encircle is a housing association providing supported housing for vulnerable tenants, and is regulated by the Regulator of Social Housing. Civitas said it is pleased to be working with Encircle for the first time.

The second investment is made up one supported living property in Bournemouth, for a total of £1.6m containing 10 tenancies.

The property is managed by Pivotal Housing Association, previously known as Providers of Accommodation and Support Housing Association.

A statement from Civitas said: “The properties are all immediately income-generating with an initial net yield in line with the company’s expectations and were sourced off-market by Civitas Housing Advisors, the company’s investment manager.

“The properties 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 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.”

Civitas Social Housing PLC launched on the stock market in November 2016 and invests in social housing.