Civitas Social Housing buys New Walk portfolio – The Board of Civitas Social Housing has announced the purchase of a portfolio of regulated social housing for a total consideration of GBP18.5 million, comprising the freehold interest in 41 properties, with 194 tenancies, in North East England. The portfolio is immediately income generating with an initial net yield in line with the Company’s expectations and was sourced off-market by Civitas Housing Advisors Limited, the Company’s Investment Manager.
Each property is subject to a 25-year lease with a specialist Housing Association – New Walk CIC – with rents established by the relevant local authority and adjusted annually in line with CPI +1% over the full period.
New Walk is a Registered Provider, regulated by the Homes and Communities Agency (“HCA”), specialising in providing supported, safe accommodation for vulnerable adults who, with appropriate support and stable housing, have the chance to improve their lives and become more independent. The accommodation is developed around this objective.
The portfolio was funded through the Company’s cash resources. In due course, it is intended that leverage will be applied in accordance with the Company’s stated policy and it is expected that this will further enhance the yield achieved from this investment.
The social homes owned by Civitas are provided on a long-term basis to Housing Associations with a wide range of tenants who vary in age profile and in the level of support that each receives.
By acquiring these social homes, and working with Housing Associations, Civitas seeks for tenants to experience a stable, high-quality living environment that offers good visibility of tenure. The Company further promotes “additionality” by the provision of new equity capital that has the potential to be redeployed in the delivery of new social homes.
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.
CSH : Civitas Social Housing buys New Walk portfolio