Civitas Social Housing plc (LON:CSH), the leading care-based social housing REIT, has announced that the Company has now completed the acquisition of the final, larger phase of its new build supported housing and healthcare facilities in Wales. This follows the completion of the first phase in June 2020. The Schemes were acquired for a total consideration of £12.4 million (excluding purchase costs). This acquisition enables Civitas to extend the geographic coverage of the Company’s portfolio within the UK and further enhances portfolio diversity.
The Schemes provide 65 beds for individuals with learning disabilities, autism and mental health care needs. They have been designed to meet the specific needs of its residents and have been developed in collaboration with relevant local authorities and commissioning bodies.
The properties within the Schemes are situated in two separate local authority areas within South Wales and are supported by an established care provider with a proven track record and a strong reputation in the region.
The properties are leased to the social landlord Bespoke Supported Tenancies Limited who are an existing counterparty to leases within the Company’s portfolio. The Schemes also benefit from equivalent back-to-back leases between the care provider and BeST.
The Schemes are immediately income-generating with an initial net yield in line with the Company’s expectations. The development was identified off-market by Civitas Investment Management Limited, the Company’s investment adviser.
Paul Bridge, CEO Social Housing, Civitas Investment Management, said:
“We are delighted with the completion of this acquisition. These are needs led state-of-the-art facilities, specifically designed to enable vulnerable adults to live in secure, safe and suitable homes within their communities. This is in line with our stated objective: to deliver sustainable returns to our shareholders by making socially beneficial investments within the housing and healthcare sectors in the UK.”
