4 September 2017
Triple Point Social Housing REIT plc
(the "Company" or, together with its subsidiaries, the "Group")
POST-IPO UPDATE AND PORTFOLIO ACQUISITIONS
The Board of Triple Point Social Housing REIT plc (ticker: SOHO) (the "Board") is pleased to provide the following update on its activities following IPO,including portfolio acquisitions made by the Group.
Post-IPO Update
The Company has progressed well since its successful IPO in early August, which was supported by a broad range of institutional investors as well as by Places for People Group, one of the UK's largest property and leisure management, development and regeneration companies.
Shortly following the IPO, the Group completed the acquisition of its seed portfolio of five supported housing assets at a purchase price of £17.9 million. The assets, which are located in Bloxham, Leeds, Newcastle, Rushden and Stoke, have each been leased to Inclusion Housing CIC as Registered Provider for an initial term of 20 years. Further details regarding the seed portfolio, and the terms upon which it was acquired, are set out in the Prospectus published by the Company on 20 July 2017.
On 14 August, the Company gave notice to HMRC of its intention to operate as a real estate investment trust for the purposes of Part 12 of the Corporation Tax Act 2010 (a "REIT").
Second portfolio acquistion
The Board is also pleased to announce that the Group has completed the acquisition of an additional portfolio of three supported housing assets, comprising 18 beds in total, for a purchase price of £3.0 million (excluding costs). The properties are located in Leeds, Leek and Wolverhampton.
The Group has entered into a new 20-year lease in respect of each of the three properties with specialist Housing Association, Westmoreland Supported Housing, which is a Registered Provider regulated by the Homes and Communities Agency.
The leases are indexed-linked to the Consumer Prices Index, and the Registered Provider is responsible for the costs of maintenance, repair, insurance and outgoings. The portfolio is immediately income generating with a net intial yield in line with the Company's investment criteria and returns profile. The properties comprise specialist, high quality homes developed for individuals with learning difficulties, physical and/or mental disabilities or other care needs.
The pipeline of acquistion opportunities is continuing to develop and Triple Point Investment Management LLP, the Company's Delegated Investment Manager, has identified a significant number of further assets which meet the requirements of the Company's Investment Objective and Investment Policy and which represent attractive potential investments for the Group.
FOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:
Triple Point Investment Management LLP (Delegated Investment Manager) |
(via Newgate below) |
James Cranmer |
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Ben Beaton |
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Max Shenkman |
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Justin Hubble |
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Akur Limited (Joint Financial Adviser) |
Tel: 020 7493 3631 |
Tom Frost |
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Anthony Richardson |
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Siobhan Sergeant |
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Canaccord Genuity Limited (Joint Financial Adviser and Corporate Broker) |
Tel: 020 7523 8000 |
David Yovichic |
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Lucy Lewis |
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Denis Flanagan |
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Newgate (PR Adviser) |
Tel: 020 7680 6550 |
James Benjamin |
Em: [email protected] |
Anna Geffert |
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Lydia Thompson |
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Langham Hall UK Services LLP (Company Secretary) |
Em:[email protected] |
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 Approved 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 is critical to securing deal flow for the Company whilst addressing the key structural issue of 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 will operate as a UK Real Estate Investment Trust.
