Paul Bridge, Civitas Investment Management
Paul Bridge, Civitas Investment Management

Care-based housing and healthcare REIT Civitas Social Housing has acquired 15 supported living and care facilities in South Wales for £10.9 million.

The portfolio provides 51 beds and long-term support for individuals with learning disabilities and mental health care needs, along with 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. with rents adjusted annually in line with the Consumer Prices Index over the full-term and are subject to a lower limit of inflation of zero percent 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, the company’s investment advisor.

The transaction is the first to be financed with the proceeds from a recently secured debt facility with M&G. Civitas said it 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, chief executive social housing at 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.”

Date published: April 27, 2021

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