13 October 2017
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 completed the acquisition of 12 supported housing properties, comprising 75 units in total, for an aggregate purchase price of £10.5 million (excluding costs). The properties are located in Bournemouth (1), Durham (1), Newcastle (1) and Sunderland (9).
The Group has entered into new 20 year (or equivalent to) FRI leases for all the properties with the ability to extend to up to 25 year terms. These leases are with specialist Housing Associations, Auckland Home Solutions, Bespoke Supportive Tenancies and Falcon Housing Association, which are Registered Providers (regulated by the Homes and Communities Agency).
The rents received under the leases are subject to annual, upward only rent reviews, index-linked to the Consumer Prices Index ("CPI"). The properties comprise specialist, high quality homes developed for individuals with learning difficulties, physical and/or mental disabilities or other care needs.
The properties are immediately income generating with a net initial yield in line with the Company's investment criteria and returns profile.
James Cranmer, Managing Partner of Triple Point Investment Management LLP, commented:
"We are delighted to be working with a growing number of Housing Associations, which we expect to increase further. We have identified a significant number of additional assets which meet the requirements of the Company's Investment Objective and Investment Policy, and represent attractive potential investments for the Group. We look forward to announcing these in the near future."
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 operates as a UK Real Estate Investment Trust.
