LONDON: Civitas Social Housing PLC, has completed the acquisition of 15 supported living and care facilities in South Wales for a total consideration of £10.9 million.
The portfolio provides 51 beds and long-term support for individuals with learning disabilities and mental health care needs along with dedicated facilities to develop and enhance independent living skills, such as cooking, numeracy and literacy.
The properties are subject to 25-year leases with Auckland Home Solutions C.I.C. (Auckland) with rents adjusted annually in line with CPI over the full-term and are subject to a lower limit of inflation of 0% per annum and a maximum indexation of 4% per annum. Auckland is a counterparty to existing leases within the Company’s portfolio.
The properties are immediately income generating with an initial net yield in line with the Company’s present expectations and were sourced by Civitas Investment Management Limited, the Company’s Investment Adviser.
The transaction represents the first to be financed with the proceeds from the recently secured debt facility with M&G. Civitas continues to focus on the acquisition of properties that have been significantly adapted or purpose-built for the delivery of mid to higher acuity care and has a significant pipeline of similar opportunities which are progressing well.
Paul Bridge, CEO Social Housing, Civitas Investment Management, said: “We are delighted to complete this acquisition using proceeds from our new debt facility and leveraging our unique relationships within the sector to secure the purchase of these state-of-the-art care facilities. These have been adapted on a bespoke basis to enable individual vulnerable adults to live in a safe and secure home whilst remaining part of their community. The acquisition will extend the Company’s geographic diversity whilst meeting the ongoing key strategic objective of delivering sustainable returns to shareholders and providing measurable social impact to society.”
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