9 May 2019
CIVITAS SOCIAL HOUSING PLC
("Civitas" or the "Company")
Response to Bespoke Supportive Tenancies Limited ("BeST") Regulatory Announcement
Civitas, a leading social housing REIT, notes that the Regulator of Social Housing ("RSH") has issued its regulatory announcement in respect of Bespoke Supportive Tenancies Limited ("BeST"), one of the 15 housing associations working with Civitas and other landlords in the sector. In line with RSH policy, BeST has not received a grading as it leases/owns less than 1,000 homes.
As at 31 March 2019, BeST represented 11.5% of the Civitas NAV and 9.5% of the Civitas GAV (based upon target leverage of 35%). As at 9 May 2019, BeST remains fully up to date with all lease payments due to Civitas and this is expected to continue to be the case. As noted previously, Civitas is playing a leading role in evolving leases to take into account concerns raised by the RSH.
Having consulted with BeST, the regulatory announcement is expected to have no impact on Civitas' portfolio or financial position.
The RSH announced in May 2018 a general review of housing associations engaged in the provision of property services for vulnerable people. The announcement issued to BeST reflects similar judgements that have been issued in respect of other recent regulatory reviews for comparable housing associations. BeST has indicated that it is in dialogue with the Regulator and is working to improve its position whilst continuing to deliver high quality services to its residents.
BeST provides accommodation for vulnerable adults with complex learning and physical disabilities and mental health needs. It also provides accommodation for women's refuge and homeless adults. It was established in 2010 as a Housing Association "Not for Profit Organisation" and obtained charitable status in 2011, later attaining registered provider status in 2012.
Paul Bridge, Chief Executive Officer of Civitas Housing Advisors, said:
"The announcement was as anticipated, after the initial grading notice and does not affect our ongoing, successful relationship with BeST, nor the vital services which BeST provides.
"Civitas is in regular and productive dialogue with BeST and the RSH and firmly supports the general review. We operate in a sector which is evolving and maturing, and we work with our Housing Association partners and care providers to continue to enhance the sustainability of our sector."
Civitas will issue a further announcement at the time that the RSH itself makes any further comment.
For further information, please contact:
Civitas Housing Advisors Limited
Paul Bridge Tel: +44 (0)20 3058 4844
Andrew Dawber Tel: +44 (0)20 3058 4846
Cenkos Securities PLC
Sapna Shah Tel: +44 (0)20 7397 1922
Tom Scrivens Tel: +44 (0)20 7397 1915
Helen Tarbet / Henry Harrison-Topham Tel: +44 (0) 20 7466 5000
Henry Wilson / Hannah Ratcliff [email protected]
Civitas Social Housing PLC is the first Real Estate Investment Trust offering pure play exposure to social housing in England and Wales. The Company is advised by Civitas Housing Advisors Limited, who are authorised and regulated by the Financial Conduct Authority under Firms Reference Number 815699. The Company is listed on the premium listing segment of the Official List of the Financial Conduct Authority and was admitted to trading on the main market for listed securities of the London Stock Exchange in November 2016. The company is a Constituent of the FTSE 250 index.
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