2nd Nov 2018 08:54
LONDON (Alliance News) - Property investor Civitas Social Housing PLC said Friday it purchased three social housing properties for a combined GBP3.7 million.
Each of the three properties - encompassing 26 tenancies - 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 properties are leased to regulated housing association firms Auckland Home Solutions CIC and Encircle Housing Ltd.
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 GBP234 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".
On Wednesday, Civitas also announced it had acquired a further three properties with 23 tenancies for a combined GBP4.9 million.
Shares in Civitas were 0.3% lower at 110.70 pence on Friday.
Related Shares:
CSH.L