4th May 2018 10:56
LONDON (Alliance News) - Triple Point Social Housing REIT PLC said Friday it has acquired one property in Bedfordshire and bought land and entered into a forward funding deal to develop a new social housing scheme in Staffordshire for a combined GBP4.3 million.
The projects - totalling 22 units - include 7 units in Bedfordshire and plans for 15 units in Staffordshire. The total aggregate commitment for both projects - excluding costs - will be GBP4.3 million.
Triple Point entered into a new full repairing and insuring lease - held by a specialist housing association - with respect to each of the Bedfordshire property for a period of 20 years with an ability to extend for five years.
With regards the Staffordshire scheme, it has entered into an full repairing and insuring lease on practical completion for a period of 20 years with an ability to extend for five years.
Whilst under construction, Triple Point will accrue an unspecified coupon from the developer for the Staffordshire property.
The leases for both the acquired and forward funded property will have annual, upward only, rent reviews increasing in line with the UK consumer price index.
The properties will immediately or on completion be income generating, Triple Point said, with a net initial yield in line with the company's investment criteria and returns profile.
The acquisitions will be funded from cash raised through its recent C share issue. In March, Triple Point raised GBP45 million through the issue of 47.5 million shares.
Shares in Triple Point were 0.5% lower at 102.00 pence on Friday.
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