Civitas Social Housing sees no financial impact from Encircle regulatory issues
Source - SMW
Social housing investor Civitas Social Housing said a negative regulatory opinion issued about a housing association it currently worked with was not expected to have an impact on its financial position.
The Regulator of Social Housing on Wednesday found that Encircle Housing did not comply with its standards on governance or financial viability.
Encircle Housing was one of 15 housing associations working with Civitas and other landlords in the sector.
Civitas said Encircle represented 5.87% of the company's net asset value.
As at 10 April 2019, Encircle remained fully up to date with all lease payments due to Civitas and that was expected to continue to be the case, it added.
'Today's regulatory announcements are expected to have no impact on Civitas' portfolio or financial position,' Civitas said.
It also that the announcement issued to Encircle reflected similar judgements issued in respect of all other recent regulatory reviews for comparable housing associations.
Encircle had indicated that it is was dialogue with the regulator and was working to improve its position.
'The announcement today is as expected and does not affect Encircle's operations in respect of Civitas; nor do we anticipate any impact on our portfolio,' chief executive Paul Bridge said.
At 2:04pm: (LON:CSH) W Resources PLC formerly Caspian Holdings PLC share price was 0p at 84.7p