The Board of Triple Point Social Housing REIT plc (tickers: SOHO and SOHC) is pleased to announce that the Group has exchanged contracts on two supported housing properties, completed the acquisition of three supported housing properties and has acquired land and entered into forward funding arrangements to develop a further three supported housing schemes, comprising 66 units (includes 1 caretaker unit) in total, for an aggregate commitment of £9.6 million (excluding costs).
The properties are located in the North East (16 units), North West (32 units), East Midlands (13 units) and East (5 units).
The Group has entered into new FRI leases in respect of each of the properties (other than the exchanged and forward funded assets) for a minimum period of 20 years with the ability to extend to 25 years (one property) and to 30 years (two properties).
These leases are with specialist housing associations with whom the Company has contracted previously, Falcon Housing Association and My Space Housing Solutions.
In relation to the exchanged and forward funded assets, the Group will enter into new FRI leases with Inclusion Housing and My Space Housing Solutions on practical completion of the schemes, for a period of 22 years (two properties) and 20 years with the ability to extend to 25 years (one property) and 30 years (two properties). All the housing associations are regulated by the Regulator of Social Housing.
The rents received under the leases are (or will be, in the case of the exchanged and forward funded assets) subject to annual, upward-only rent reviews, increasing in line with the Consumer Prices Index. Over the period of construction of the forward funded assets, the Group will accrue a coupon from the developer.
The properties comprise specialist, high quality homes refurbished for individuals with mental health and other support and care needs.
The properties will (immediately or on completion of the acquisitions) generate net initial yields in line with the Company’s investment criteria and returns profile.
The acquisitions have been funded from the proceeds of the C Share issue undertaken by the Company in March 2018 (in respect of which a prospectus was published on 7 March 2018 (the “Prospectus”)) and, accordingly, the properties will be attributed to the C Share pool (further details of which can be found in the Prospectus).
Further information on the Company can be found on its website at www.triplepointreit.com.