Civitas Social Housing has secured a new seven-year term, interest-only, loan facility of €97.5m (£84.55m) from M&G Investment Management Limited. The facility is priced at 2.75% above a fixed rate set by reference to the LIBOR swap rate of the loan term and is repayable seven years from the date of utilisation. It is secured by an existing portfolio of specialist supported living assets.
The facility is designed to support the company's continuing growth plans and Civitas intends to utilise the proceeds of the Facility during 2021 to enable the purchase of high-quality properties that form part of the pipeline of new transactions. This in turn is expected to further enhance both rental income and in due course dividend cover.
Michael Wrobel, Chairman of Civitas, commented: "We are delighted to have secured this new loan facility from M&G, a leading institutional lender with extensive experience and understanding of the social housing sector. We expect this loan to be utilised over the coming months to bring forward our extensive pipeline of high-quality properties and continue to deliver on our dual mission of stable long-term income for our shareholders and excellent long-term accommodation for the residents in our properties."
Duncan Batty, Director, M&G Investment Management Limited, added: "We are very pleased to provide this new seven-year facility for Civitas to enable the Company to continue to expand its portfolio of dedicated care-based accommodation."