Social housing REIT Civitas has bought 28 supported-living properties in London, the Midlands and Southern England, and exchanged on one additional property, for £65m.
The properties each have a 25-year lease agreement with one of two housing associations: First Priority Housing Association and Westmoreland Supported Housing Association. They can accommodate 225 residents in total.
The portfolio is expected to be immediately income producing with an initial net yield of 5.8%. Rents are underpinned by the relevant local authority and adjusted annually in line with CPI+1% over the full period.
The company was granted exclusivity on the portfolio, it having been sourced off-market by Civitas Housing Advisors Limited, the company’s investment adviser.
Civitas raised £350m in a listing in November, making in the first social housing REIT on the London Stock Exchange. It made this portfolio purchase with cash, but said it intended to use leverage to further enhance the yield.
Michael Wrobel, chairman of Civitas, said: “We are pleased to have completed our first investment quickly after the IPO and to have acquired a diversified portfolio of supported living properties.
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