Social housing group completes £3m acquisition

A social housing group has completed the acquisition of 19 supported living properties in the West Midlands in a deal worth more than £3m.

Civitas Social Housing has purchased the portfolio, which comprises the freehold interest in 18 properties and leasehold interest in one property, with 30 tenancies. The deal totals £3,055,000.

The group said the portfolio would be immediately income generating with an initial net yield in line with the company’s expectations. The deal was sourced off-market by Civitas Housing Advisors, the company’s investment manager.

Each property is subject to a 22-year lease with specialist housing association – Inclusion Housing CIC – which is focused on specialist supported living, with rents established by the relevant local authority and adjusted annually in line with CPI over the full period. Inclusion is a registered provider, regulated by the Homes and Communities Agency and a counterparty to leases within the company’s previous portfolios.

The acquisition was funded through the company’s cash resources. In due course, it is intended that leverage will be applied in accordance with Civitas’ stated policy and it is expected this will further enhance the yield achieved from this investment.

Civitas targets sustainable returns to its shareholders by making socially relevant investments within the regulated social housing sector in England and Wales.

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