7th Sep 2018 09:15
LONDON (Alliance News) - Property investor Civitas Social Housing PLC said Friday it purchased eight social housing properties for a combined GBP38.3 million.
Each of the properties is subject to a 25-year lease with rents adjusted annually in line with the UK consumer price index over the full period. Civitas said the investments will generate income for Civitas immediately with a net initial yield in line with its expectations.
The acquisitions will be funded using existing cash resources from its recent C share issue.
Civitas raised GBP350 million in its November 2016 initial public offering. In November 2017, it raised a further GBP302.0 million through a C share issue and secured loans totalling GBP92.5 million. The firm has now invested GBP209 million of the C share funds.
Civitas added it was "intended that leverage will be applied to this portfolio in accordance with the company's stated policy and it is expected that this will further enhance the yield achieved from this investment".
Shares in Civitas were 1.9% higher at 109.50 pence on Friday.
Related Shares:
CSH.L