Social housing company snaps up more properties

A listed social housing company has announced it has bought two properties for £4.3m.

Civitas Social Housing has completed the purchase of two specialist supported living properties for a total consideration of £4.3m, with 27 tenancies.

The properties are immediately income generating with an initial net yield in line with the company’s expectations and both were sourced off-market by Civitas Housing Advisors Limited, the company’s investment manager.

The properties are in Yorkshire and the North West and have been adapted for use as specialist supported living for tenants with learning disabilities and mental health needs. There is a care provider in place at both properties.

The properties are each subject to a 25-year lease with specialist housing association Encircle Housing, with rents adjusted annually in line with CPI over the full period.

A statement from Civitas said: “The properties were funded through the company’s cash resources from the 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.”

The latest purchase comes less than a week after Civitas announced it had bought two supported living properties in Stockport for £4.8m.