Civitas Social Housing Plc Share Offer - This offer is closed

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The Civitas Social Housing Plc share offer is now CLOSED

14th December 2018


Civitas Social Housing Plc - Share Offer Overview

We are currently taking orders in Civitas Social Housing Plc. This is an existing REIT on the main market of the LSE. Cornhill Capital are acting as an intermediary on this deal, targeting a raise of £350m. The issue price is 100p with a 98p opening NAV. This has a fixed rate dividend of 3% p.a. on the C Shares.

Closing Date: 8th November 2017 at 16:00

Expected Timetable

  • Offer Open

    18th October 2017

  • Offer Closes:

    Wednesday 8th November 2017 11.00am

  • Allocation announced:

    10th November 2017

  • Trading begins:

    14th November 2017

About Civitas Social Housing Plc

Civitas Social Housing PLC invests exclusively in portfolios of built, regulated Social Homes in England and Wales. The Company is undertaking a £350 million C Share fundraise to take advantage of a pipeline of off-market opportunities.

Civitas is a UK REIT externally managed by Civitas Housing Advisers Ltd (the Investment Adviser) with a fully independent Board of Directors. Civitas targets a dividend yield of 5% p.a. on the Ordinary Shares. The properties are predominantly (92%) freehold. 99% of the Company’s income is ultimately derived from either local or central government. Long term lease agreements are employed; typically 10 to 40 years. Civitas raised £350 million in the Company’s IPO in November 2016; current net asset value (NAV) of £384 million (as at 30 September 2017).

IPO proceeds have been fully deployed/allocated. Average net initial acquisition yield of 6% (before purchase costs), 5.7% (including purchase costs).

  • Targeting a £350 million C Share fundraise via an Open Offer, Placing, Offer for Subscription and Intermediaries Offer
  • A pipeline of off-market opportunities in excess of £500 million identified by the Investment Adviser (of which c.£100 million is expected to be available in the near term)
  • Fixed rate dividend of 3% p.a. on the C Shares
  • C Shares will convert into Ordinary Shares (within 12 months or once 90% of proceeds have been invested/committed)
  • These Ordinary Shares will then target a dividend of 5% p.a. paid quarterly, expected to increase broadly in line with inflation
  • 100p issue price/98p opening NAV


(Please note that these risks represent the judgement of Cornhill Capital, there may be additional risks represented in the prospectus)

  • Any property market recession or future deterioration in the property market in the UK could cause the Company to realise its investments at lower valuations; delay the timings of the Company’s realisations; and/or impact the Company’s rental yields
  • Property valuation is inherently subjective and uncertain
  • Availability of borrowings and the gearing effect of borrowing can work against as well as for Shareholders
  • The Shares may trade at a discount to NAV per Share and Shareholders may be unable to realise their investments through the secondary market at NAV per Share
  • The Company may be subject to a period of uncertainty in the period leading up to eventual Brexit including uncertainty in relation to any potential regulatory or tax change and the macroeconomic effect of an eventual Brexit on the value of UK property

Offer Documents

Important information

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Risk Warning pre-IPO’s, IPO’s & Secondary Issues

Investments in pre-IPO’s and IPO’s involve a high degree of risk and are not suitable for all investors. A pre-IPO issue is the funding given to the company before listing. There is no guarantee that the company will list, but if it does then there is normally an increase from the pre-IPO to the IPO price, representing a profit. However, even when a company is listed on, say,  the AIM market, it is considered to be a high-risk investment, and will have wider spreads on price and be more illiquid and it may be difficult to sell the shares on a short-term basis and in some circumstances it may be difficult to sell at any price. All investments made into an IPO or new issue or in a secondary issue should always be made solely on the basis of the information provided in the relevant prospectus and any other supplementary documentation. The specific risks will be detailed in the prospectus but the value of your investment can go down as well as up and you may not get back the money you invested.  You should be sure that you fully understand the purpose of, and the reason for, the fundraising. Before you decide to invest you should obtain information regarding the business plan and note the risk factors. If you have any doubts about the suitability of an investment you should seek professional advice.

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