22nd Oct 2018 09:06
LONDON (Alliance News) - Property investor Civitas Social Housing PLC said Monday it purchased three social housing properties for a combined GBP4.6 million, with another GBP4.2 million property purchase being prepared.
Each of the three 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 firm has also exchanged contracts on a further acquisition of a property for a total consideration of GBP4.2 million.
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% lower at 109.34 pence on Monday.
Related Shares:
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