17th Dec 2020 14:43
(Alliance News) - Civitas Social Housing PLC and Triple Point Social Housing REIT PLC on Thursday noted the recent regulatory judgment by the UK Regulator of Social Housing in respect of housing association My Space Housing Solutions.
The pair noted the non-compliant G3 grading in terms of governance and a V3 grading in terms of financial viability, but added this is the same gradings that have been issued in respect of all other recent regulatory judgments for similar housing associations.
"My Space has indicated that it is working to improve the position," Civitas said.
Triple Point said the recommendation reflects the regulator's "desire to see My Space demonstrate improvement in the areas of business planning and risk management".
"The company notes that My Space continues to operate profitably whilst engaging with the regulator in order to address the concerns highlighted in the judgement. The regulator states that My Space has committed to work with them to address the points outlined in the judgement and has developed a financial and governance improvement action plan," Triple Point added.
My Space provides accommodation for working age adults with long-term care needs that include learning disabilities, mental health, autism and physical disability as well as for individuals who have suffered from domestic abuse and addiction.
As at September 30, My Space represented 1.1% of Civitas's rent roll. Triple Point has 34 assets leased to My Space, the aggregate value of which, as at September 30, was GBP48.7 million. This represents 9.1% of the company's current portfolio value and 9.3% of its rent roll.
Both Civitas and Triple Point noted all rent payable under its leases with My Space continues to be paid in full.
Triple Point continued: "The manager has liaised with the group's independent valuer, Jones Lang LaSalle Ltd, who has confirmed that there should be no impact on the value of the group's property portfolio as a result of the non-compliant rating."
Shares in Civitas were 0.4% lower in London on Thursday at 104.83 pence each. Triple Point was trading flat at 107.50p.
By Paul McGowan; [email protected]
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