Care-based housing and healthcare real estate investment trust Civitas Social Housing has acquired three supported living properties and exchanged on a further property for a total consideration of £2.5 million, excluding purchase costs.
The acquisition comprises four self-contained single occupancy properties in the East of England which have been specially adapted for adults with learning disabilities and mental health care needs.
The properties are leased to Chrysalis Supported Association, with rents adjusted annually in line with the consumer price index over the full-term and are subject to a lower limit of inflation of zero per cent per annum and a maximum indexation of 4% per annum. The properties also have nomination agreements with the respective local authorities that support the rental income for between 10 and 20 years. Chrysalis is a counterparty to existing leases within Civitas’s portfolio.
The properties are immediately income generating with an initial net yield in line with the company’s expectations and were sourced by Civitas Investment Management, the company’s investment advisor.
Civitas stated that it continues to deploy the M&G facility proceeds towards 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.
Date published: June 29, 2021