Contracts have been exchanged for a portfolio purchase worth £11.5 million. Civitas Social Housing PLC has acquired a portfolio of regulated social housing which includes ten care homes, and 79 other tenancies that are located across the Midlands.
The portfolio has been acquired off market by the Investment Advisor for Civitas. The portfolio will be managed by the Inclusion Housing Association and will be regulated by the HCA. It is thought that the properties in the portfolio have been delivering care for more than twenty years. All of the properties are fully operational and on completion it is thought that they will be able to generate income straight away. The net yield of the portfolio is expected to be 6.3% initially, which is based on the purchase price of the portfolio.
The completion of the deal is expected in the next two months. The properties that are included in the portfolio are subject to a 30-year lease that is arranged with Inclusion Housing Association. The rents for these properties will be adjusted by CPI +1% over the course of this lease. The care in the social housing will be provided by Lifeways Community Care Limited.
The lease has been arranged with Inclusion Housing Association which is a group that specialises in renting and operating social housing. The company currently manages more than 1,200 properties that are located across 59 local authorities. Inclusion looks to offer accommodation that is supported by specialists in order to make sure that the needs of the adult tenants are met. Some of the support is offered to tenants with learning difficulties, mental health and brain injuries. Support is delivered to the tenants in Inclusion properties daily.
Lifeways Community Care Limited is a registered care provider that is regulated by the Care Quality Commission. The Community Care company works to offer support to people with a wide range of complex needs.