Civitas acquires regulated social housing portfolio
Source - SMW
Civitas Social Housing has completed the purchase of a portfolio of regulated social housing for a total consideration of £22.0m, comprising the freehold interest in 16 supported living properties, with 173 tenancies.
It said the properties were situated across the country within eight different local authority areas.
It said the portfolio was immediately income-generating with an initial net yield in line with the company's expectations and was sourced off-market by Civitas Housing Advisors Limited, the company's investment manager.
Civitas said each property was subject to a 22-year lease with a specialist Housing Association - Inclusion Housing CIC - focused around supported living, with rents established by the relevant local authority and adjusted annually by inflation (CPI) over the full period.
The company also issued a statement on the tragic events surrounding Grenfell Tower and the subsequent national evaluation of the use of certain building materials and construction methods in high rise buildings.
Civitas said it sought to ensure that the properties within its portfolio were of a high standard and suitable for use by the tenants.
It said this was supported by 100% physical inspection prior to purchase with an associated programme of monitored improvements as required. The company said its strategy was to buy individual home dwellings and low rise smaller apartment buildings.
Civitas said it did not own any high rise or older system-built properties to which the issues referred to relate and it had never been the intention to acquire any such properties as they did not fit within the company's investment strategy.
It said its Civitas its thoughts were with those caught up in these tragic events and Civitas Housing Advisers Limited had made a private donation to the British Red Cross London Fire Relief Fund.