13 Aug 2021 10:27
13 August 2021
CIVITAS SOCIAL HOUSING PLC
Response to Regulatory Judgement
The Board of Civitas Social Housing PLC ("Civitas" or the "Company"), the UK's leading care-based and healthcare REIT, notes the recent regulatory judgement by the Regulator of Social Housing ("RSH") in respect of Auckland Home Solutions CIC ("Auckland"), one of the 16 Approved Providers working with Civitas. Today's judgement by the RSH follows the notice that was issued previously in respect of Auckland on 12 March 2021 and as commented on in the Company's previous announcement of the same date. In line with RSH policy, Auckland has not received a grading as it leases/owns fewer than 1,000 homes.
Auckland now represents 16.9% of Civitas' annualised rent roll, down from 23.7% as announced in the Company's recent annual results to 31 March 2021. The reduction reflects the Company's continuing policy of driving efficiencies within the portfolio and where appropriate, seeking diversification. In so doing it enables Civitas to extend further its stated aim to work with a wider range of counterparties including established charities and community benefit societies.
Auckland remains fully up to date with all lease payments due to Civitas and this is expected to continue to be the case. Auckland has committed to continue to engage with the RSH and in turn Civitas will continue its supportive relationship with Auckland and all other counterparties with the shared objective of further enhancing standards across the sector.
By way of background, the RSH announced in May 2018 a general review of housing associations engaged in the provision of property services for vulnerable people. Auckland's review is part of this regulatory process.
Auckland provides housing for vulnerable adults in England and Wales, enabling individuals with complex physical and mental challenges to retain their independence within a supported living setting. Auckland is a member of the Social Housing Family CIC, a not‐for‐profit community interest company established to assist member firms to enhance corporate governance standards and to benefit from sharing of best practice expertise.
Further updates will be provided as and when appropriate.
ENDS
For further information, please contact:
Civitas Investment Management Limited
Paul Bridge Tel: +44 (0)20 3058 4844
Panmure Gordon
Sapna Shah Tel: +44 (0)20 7886 2783
Tom Scrivens Tel: +44 (0) 20 7886 2648
Liberum Capital Tel: +44 (0) 20 3100 2000
Chris Clarke
Darren Vickers
Owen Matthews
Buchanan
Helen Tarbet / Henry Wilson Tel: +44 (0) 20 7466 5000
Hannah Ratcliff / George Beale civitas@buchanan.uk.com
Notes:
Civitas Social Housing PLC ("CSH") was created in 2016 by Civitas Investment Management Limited as the first dedicated London listed REIT, to raise long-term, sustainable, institutional capital to invest in care-based social homes across the UK. So far, Civitas has completed more than 120 individual transactions to build the largest portfolio of its kind that has been independently valued at £915.6million (31 March 2021). CSH now provides homes for 4,391 working age adults with long-term care needs, in 648 bespoke properties that are supported by 119 specialist care providers, 16 approved providers and working with over 178 individual local authorities.