London Stock Exchange welcomes Civitas Social Housing PLC
Civitas Social Housing PLC is a company formed to acquire a diversified portfolio of built social homes in England and Wales. It is the first LSE-listed REIT offering investors pure-play exposure to built social housing. The IPO was over-subscribed raising gross proceeds of £350m.
The Company’s objective is to provide shareholders with an attractive level of income underpinned by long term leases and occupancy agreements, together with the potential for capital growth.
Civitas has identified a significant pipeline of potential assets, including a near term opportunity. Portfolios of social homes are becoming available for investment due to current providers seeking to reduce costs and improve internal efficiencies. Civitas' strategy is designed to have a positive social impact, enabling the development of new social homes.
The social housing sector in England and Wales is valued at circa £300 billion. There is a significant shortage of social housing, with approximately 4.5m people currently on local authority waiting lists.
Civitas Housing Advisors (CHA) acts as Civitas’ Investment Adviser. The CHA team has had regulatory and operational experience at the highest level in the sector, including the acquisition, sale and management of over 80,000 social homes throughout the UK.
Cenkos Securities acted as sole sponsor and financial adviser. Norton Rose Fulbright provided legal and tax advice to Civitas.
Commenting, Michael Wrobel, Chairman of Civitas Social Housing PLC, said:
“We have been delighted with the interest and support of investors, which is reflected in the fundraise being over-subscribed and the Company raising gross proceeds of £350m. We can now look forward to the future and progressing our strategy as a listed company”
Paul Bridge, CEO of CHA said:
"Civitas looks forward to working in partnership with social housing providers to enable significant new investments into the sector."