27th Apr 2018 11:36
(Correcting that Civitas acquired three as opposed to two properties)
LONDON (Alliance News) - Property investor Civitas Social Housing PLC said Friday it purchased three supported-living properties for a combined GBP6.4 million.
The first two properties are located in Stockport, Manchester, and are operated by Encircle Housing Ltd and was bought for GBP4.8 million. The third property is in Bournemouth, Dorset, and managed by Pivotal Housing Association costing GBP1.6 million.
Each of the properties is subject to a 25-year lease with rents adjusted annually in line with the UK consumer price index plus 1% over the full period. Civitas said the investments 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% lower at 103.47 pence on Friday.
Related Shares:
CSH.L