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16 Feb 2018 09:58
16 February 2018
Triple Point Social Housing REIT plc
(the "Company" or, together with its subsidiaries, the "Group")
ACQUISITIONS UPDATE
The Board of Triple Point Social Housing REIT plc (ticker: SOHO) is pleased to announce that the Group has has contracted on 12 properties, comprising 96 units, for an aggregate commitment of £18.1 million (excluding costs). The properties are located in the West Midlands (22 units), the North West (24 units) and across the South East of England (50 units).
Of these, the Group has exchanged contracts on one supported housing property and completed the acquisitions of a further ten supported housing properties, comprising 79 units in total, for an aggregate purchase price of approximately £15.0 million (excluding costs).
The Group has entered into new FRI leases in respect of each of the properties for a minimum period of 20 years with the ability to extend for one year (one property), five years (one property) or ten years (eight properties). These leases are with specialist housing associations Falcon Housing Association, My Space Housing Solutions and Inclusion Housing CIC. These housing associations are Registered Providers regulated by the Regulator of Social Housing.
The Group has also acquired the land and entered into a forward funding arrangement to develop a 17 unit supported housing scheme for a total project cost of approximately £3.1 million (excluding costs).
The Group will accrue a coupon from the developer over the period of construction. The property is pre-let to Westmoreland Supported Housing and, once the practical completion of the works has been certified, the Group will enter into in a new FRI lease with Westmoreland Supported Housing for a period of 20 years with the ability to extend to 30 years. The yield will be in line with the Company's investment criteria and return profile.
The rents received under the leases are (or will be) subject to annual, upward-only rent reviews, increasing in line with the Consumer Prices Index. The properties comprise specialist, high quality homes refurbished for individuals with mental health and other support and care needs.
The completed properties are immediately income generating with a net initial yield in line with the Company's investment criteria and returns profile.
FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:
Triple Point Investment Management LLP (Delegated Investment Manager) | (via Newgate below) |
James Cranmer | |
Ben Beaton | |
Max Shenkman | |
Justin Hubble | |
Akur Limited (Joint Financial Adviser) | Tel: 020 7493 3631 |
Tom Frost | |
Anthony Richardson | |
Siobhan Sergeant | |
Canaccord Genuity Limited (Joint Financial Adviser and Corporate Broker) | Tel: 020 7523 8000 |
David Yovichic | |
Lucy Lewis | |
Denis Flanagan | |
Newgate (PR Adviser) | Tel: 020 7680 6550 |
James Benjamin | Em: triplepoint@newgatecomms.com |
Anna Geffert | |
Leena Patel |
The Company's LEI is 213800BERVBS2HFTBC58.
Further information on the Company can be found on its website at www.triplepointreit.com.
NOTES:
The Company invests in social housing assets in the UK, with a particular focus on supported housing. The assets within the portfolio will typically be subject to inflation-adjusted, long-term (from 20 years to 25 years), Fully Repairing and Insuring ("FRI") leases with Registered Providers. The portfolio will comprise investments into properties which are already subject to an FRI lease with a Housing Association, Local Authority or other regulated organisation, as well as forward funding of pre-let developments but will not include any direct development or speculative development.
There is increasing political and financial pressure on Housing Associations to increase their housing delivery and this is creating opportunities for private sector investors to participate in the market. The Group's ability to provide forward financing for new developments not only enables the Company to secure fit for purpose, modern assets for its portfolio but also addresses the chronic undersupply of suitable supported housing properties in the UK at sustainable rents and delivering returns to investors.
Triple Point Investment Management LLP (part of the Triple Point Group) is responsible for management of the Group's portfolio (with such functions having been delegated to it by Langham Hall Fund Management LLP, the Company's alternative investment fund manager).
The Company was admitted to trading on the Specialist Fund Segment of the Main Market of the London Stock Exchange on 8 August 2017 and operates as a UK Real Estate Investment Trust.
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