Civitas Social Housing PLC (LON:CSH) today announced that the Company has completed the purchase of 9 regulated social housing properties comprising 42 tenancies for a total consideration of £7,837,652.
The properties are leased to Encircle Housing Limited (“Encircle”), Auckland Home Solutions C.I.C. (“Auckland”) and Inclusion Housing C.I.C. (“Inclusion”) all of which are regulated by the Regulator of Social Housing and are counterparties to existing leases within the Company’s portfolio.
The properties will be immediately income-generating with an initial net yield in line with the Company’s expectations and were sourced off-market by Civitas Housing Advisors Limited, the Company’s investment adviser.
The properties have been adapted for use as accommodation for tenants with learning disabilities and other care needs, and there is a care provider in place at each property. The properties are subject to 25-year leases and rents are adjusted annually in line with CPI over the full period.
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.