Civitas Social Housing completes £73.5m acquisition in largest ever deal
Source - SMW
Civitas Social Housing purchased 19 regulated social housing properties for a total of about £73.5m, and also exchanged contracts on two further properties for £12.1m, with completion expected in due course following certain works being undertaken.
The properties were situated across England and Wales over 14 local authority areas and supported by six separate care providers.
The acquisition would enable Civitas to extend the coverage of the company's national portfolio and further enhances the geographic diversity.
The properties would be 'immediately income-generating with an initial net yield in line with the Company's expectations,' the company said.
In the coming weeks, Civitas said it would complete and announce the arrangement of additional debt facilities on terms that the company deemed would be favourable, boosting cash generation and the overall return to shareholders.
The acquisitions had lifted the company's run rate rental income from approximately £41m to approximately £45m, an increase of 10%. This was expected to increase further as additional acquisitions are announced in due course.
'We are delighted to have completed our largest deal so far, and to have acquired properties which are of the highest quality, run by focused and operationally robust Registered Providers,' said Paul Bridge, Chief Executive Officer of Civitas Housing Advisors.