Civitas Social Housing to buy Midlands property portfolio for £11.5m

Civitas Social Housing is to buy a portfolio of regulated social housing in the Midlands for £11.5m.

The portfolio includes 10 care homes and 79 tenancies, managed by Inclusion Housing Association, which is regulated by the Homes and Communities Agency, a public body.

On completion of the deal, which is expected close within two months, the properties will immediately generate income with an initial net yield of 6.3%, based on the purchase price.

Each of the properties is subject to a 30-year lease arrangement with Inclusion Housing Association with rents adjusted annually by CPI+1% over the full period and Lifeways Community Care providing the care.

The company said that it intends to leverage the portfolio in accordance with its policy to further enhance the yield achieved on this investment.

By acquiring these social homes, and working with Housing Associations, Civitas said that it “seeks for tenants to experience a stable, high-quality living environment that offers good visibility of tenure” and provide new equity capital to redeploy in the delivery of new social homes.

Shares in Civitas Social Housing were down 0.18% to 109.30p at 1229 BST.