Social housing group expands portfolio with £14.5m acquisition

Social housing group Civitas has strengthened its portfolio with the acquisition of nine specialist properties in the West Midlands in a deal worth more than £14.5m.

The company has not identified the properties individually but has said they come complete with 63 tenancies.

The total of the deal is said to be £14,595,082 and the properties will be immediately income generating with an initial net yield in line with Civitas’ expectations.

The deal was sourced off-market by Civitas Housing Advisors, the company’s investment manager.

All the properties have been adapted for use as residential care accommodation for tenants with learning disabilities and additional needs, and there is a care provider in place.

The properties are each subject to a 25-year lease with a specialist housing association – Chrysalis Supported Association – and rents are adjusted annually in line with CPI over the full period. Chrysalis is a registered provider, approved by the Regulator of Social Housing, and a counterparty to leases within Civitas’ existing portfolio.

The portfolios were funded through the company’s cash resources from its recent share issue.

In due course, Civitas said it intended to leverage the portfolio in accordance with its stated policy and it is expected this would further enhance the yield from the investment.