14th Mar 2018 11:52
LONDON (Alliance News) - Property investor Civitas Social Housing PLC said Wednesday it purchased two residential care properties for a combined GBP2.9 million.
The properties are located in Wales and north-west England, and are operated by Chrysalis Supported Association Ltd and Hilldale Housing Association.
Each of the properties is subject to a 25-year lease with rents adjusted annually in line with the UK consumer prices index over the full period. Both properties will generate income for Civitas immediately with a net initial yield in line with the company's expectations.
The acquisitions will be funded using the company's existing cash resources from its recent C share issue.
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."
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.
Shares in Civitas were 0.5% higher at 105.00 pence on Wednesday.
Related Shares:
CSH.L
