Civitas Social Housing has acquired a portfolio of regulated social housing for £22.9m in the South West of England.
Each of the 21 supported living properties, acquired in an off-market deal, is subject to a 25-year lease with the Providers of Accommodation and Support Housing Association, which provides assistance for vulnerable tenants. The net initial yield for the properties was in line with the company’s target of between 5.5% and 6.5%.
Rents will be established by local authorities and adjusted annually by CPI+1% over the period.
The properties have been adapted for use as specialist supported living homes for those with physical or mental disabilities. Tailored support will be in place for tenants within each property.
All of Civitas’ social homes are provided on a long-term basis to housing associations, which the company said reflects its goal to target “socially relevant investments” with sustainable returns.
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