Triple Point Social Housing REIT (Ticker: SOHO) announces that it has successfully completed the acquisition of ten supported housing properties, and exchanged contracts on a further two properties, comprising 56 individual units in total, for an aggregate cost of approximately £14m. The properties are in areas of high demand in the North West (18 units), Yorkshire (18 units) and the South East (20 units).
The properties comprise specialist, adapted, high-quality homes for individuals with enduring mental health and other care needs. For each property, Triple Point has entered (or, for the properties yet to complete, will enter) into a lease for at least 20 years with a specialist regulated housing provider in order to provide long-term accommodation for the residents. The providers include Blue Square Residential, Chrysalis Supported Housing and Independent Housing.
The rent that Triple Point receives under the leases is subject to annual, upward-only rent reviews, increasing in line with the Consumer Price Index. The properties generate net initial yields in line with Triple Point’s existing portfolio.
Triple Point uses private capital to acquire, or fund the development of, newly built or newly renovated housing in the community for people with long-term care needs whose rent is funded by government. This type of housing has been shown to improve the wellbeing of people moving out of institutional care settings, while saving the government money. Triple Point’s portfolio has more than 450 properties providing homes for over 3,000 residents. Based on strong demand, Triple Point is looking to invest in more supported housing schemes across the UK.
Max Shenkman, Head of Property Investment at Triple Point, said: “We are delighted to have acquired these supported housing properties to help provide accomodation in areas of high demand across the country. We remain committed to investing in much-needed specialised supported housing designed to improve the wellbeing of people with long-term health needs, while saving the government money and generating resilient rental income. With a strong pipeline of acquisitions, we look forward to creating further positive impact in the months and years ahead.”