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Seneca adds social housing stock and private rented REITs to portfolios

Seneca adds social housing stock and private rented REITs to portfolios

  • Civitas Social Housing, the first real estate investment trust (“REIT”) dedicated to existing portfolios of social homes in England and Wales added to Seneca portfolios
  • Investment also made in PRS REIT, the first quoted REIT to focus purely on the private rented sector (“PRS”)

Richard Parfect, fund manager, Seneca Investment Managers, says:

“Traditionally the REIT sector was all about shops and office space, but recently we’ve added two specialist REITs in very different sectors, both offering the opportunity for an excellent yield and potential for future growth.

“PRS REIT is the first REIT investing in the private rented sector. It floated on the London Stock Exchange on 31 May raising £250 million and is supported by the UK Government’s Homes and Communities Agency. We took part in the IPO as we recognise the potential for income, with an attractive dividend yield of 6%, and capital growth. In essence, the fund is focused on providing quality family housing to rent, which is a growing segment of the UK market where there is a great shortage of family properties. With the initial capital raised, the fund’s objective is to provide funding and work in conjunction with housebuilding partners to develop in excess of 2,500 new rental homes across key regions in the UK.

“Civitas is the UK’s first REIT dedicated to building up a portfolio of social homes. The company works in partnership with Registered Providers (RPs) such as housing associations and local authorities to support the provision of capital to deliver more social homes. It has an appealing deal flow as evidenced by the recent acquisition of a portfolio of social housing in Southampton. Through these acquisitions, RPs are able to free up capital to reinvest in further social homes. With a target yield of around 5% plus the potential for capital growth, we view this as an attractive stock for our specialist allocation across the Seneca portfolios.”

Ends

 

Past performance should not be seen as an indication of future performance. The value of investments and any income may fluctuate and investors may not get back the full amount invested.

The views expressed are those of the fund manager at the time of writing and are subject to change without notice. They are not necessarily the views of Seneca and do not constitute investment advice. Whilst Seneca has used all reasonable efforts to ensure the accuracy of the information contained in this communication, we cannot guarantee the reliability, completeness or accuracy of the content.

This communication provides information for professional use only and should not be relied upon by retail investors as the sole basis for investment.

Seneca Investment Managers Limited (0151 906 2450) is authorised and regulated by the Financial Conduct Authority and is registered in England No. 4325961 with its registered office at 10th Floor, Horton House, Exchange Flags, Liverpool, L2 3YL  FP17/159

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