Civitas Social Housing completes acquisition of three supported living properties

Civitas Social Housing has completed the £3.5m acquisition of a portfolio of regulated social housing, comprising of three supported living properties, with 13 tenancies, in the West Midlands and south east of England.

The portfolio is expected to be immediately income generating with an initial net yield of 6%, based on the purchase price.

Each of the properties is subject to a 25-year lease with one of three specialist housing associations, Westmoreland Supported Housing Association, Trinity Housing Association and Hilldale Housing Association, with rents established by the local authority and adjusted annually in line with inflation.

The acquisitions were funded from the company’s cash resources and Civitas intends that leverage will be applied to the portfolio to enhance the yield achieved on the investment.

Shares in Civitas Social Housing were down 0.23% to 110.50p at 1020 BST.