Social housing property portfolio sold

Social housing group Civitas has agreed a £3.5m deal for three supported living properties.

Each of the properties within the portfolio is subject to a 25-year lease with one of three specialist Housing Associations, including West Bromwich-based Trinity Housing Association.

Stock market-listed Civitas said the unidentified properties are in the West Midlands and South East of England.

The off-market deal has an initial net yield of 6.0%.

Rents, which have been established by the relevant local authority, are adjusted annually in line with the CPI rate of inflation over the full 25-year lease period.

Civitas funded the deal through its cash resources and has said “it is intended that leverage will be applied to this portfolio” that will further enhance the yield achieved.

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