Civitas Social Housing REIT has announced a £350m fund raise to continue expanding its fund.
The REIT launched last November amidst fanfare about being the first social housing REIT on the London Stock Exchange, and raised £350m.
This fundraising will be watched closely due to the raft of competition that has entered the market over the ensuing 11 months.
It invests in built, regulated homes in England and Wales focusing on specialist supported housing, underpinned by long leases to housing associations. It targets a 5% dividend yield.
Civitas Housing Advisors acts as investment adviser and has apparently reached “various commercial understandings” with some registered providers and developers of social housing that will deliver new opportunities.
Civitas said the various opportunities will account for a pipeline in excess of £500m over the next 12 months.
Michael Wrobel, chairman of Civitas, said: “The board is very pleased to announce Civitas’s first fundraise since IPO. This reflects the company’s consistent delivery against its objectives since it listed and the strength of the immediate and longer-term pipeline of investable opportunities.
“We believe the issue will place the company in the best possible position to capitalise on these opportunities, thereby continuing to deliver for tenants and shareholders alike.”
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