Social housing investor expands presence with £13.8m investment

Social housing investor Civitas has expanded its presence in the East Midlands as part of a £13.8m investment.

The company has completed the purchase of two regulated social housing portfolios for a total value of £13,771,333.

The properties are situated in Leicestershire and Gloucestershire and together, comprise the freehold interest in 11 properties, with 69 tenancies.

Civitas said the properties were immediately income generating with an initial net yield in line with its expectations.

Both transactions have been sourced off-market by Civitas Housing Advisors, the company’s investment manager.

All the properties have been adapted for use as specialist supported living and residential care accommodation for tenants with mental illness or other care needs, and there is a care provider in place.

The properties are each subject to a 25-year lease with specialist Housing Association,Trinity Housing Association, which is focused around specialist supported living, with rents established by the relevant local authority and adjusted annually in line with CPI over the full period.

Trinity is a registered provider, regulated by the Regulator of Social Housing and a counterparty to leases within the company’s previous portfolios.

The portfolios were funded through Civitas’ cash resources from the company’s recently issued C share. In due course, it intends to apply leverage to portfolio in accordance with its stated policy and this is expected to further enhance the yield achieved from this investment.

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

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