Member Article

IPO interest for first-ever social housing REIT exceeds £350m

Civitas Social Housing plc has attracted overwhelming interest in its IPO after it announced that demand in the fundraise had exceeded the maximum gross proceeds.

According to the group, which is the first-ever real estate investment trust (REIT) focused on social housing, investor interest had exceeded £350m and that Civitas has had to undertake a scaling back exercise with regards to the applications it has received.

Michael Wrobel, Chairman at Civitas commented: “We are delighted with the investor support we have received and we look forward to working with our shareholders in the future.”

Founded by former Homes for Haringey Chief Exec, Paul Bridge, Civitas has said it hopes to use the IPO proceeds to acquire built social homes across England and Wales, and according to Inside Housing, has already entered into discussions to secure two purchases worth £50m in partnership with housing associations in London and the Midlands.

It is reported to be targeting a development pipeline of £500m with a target dividend yield of 5%, which it expects to increase in line with inflation.

Bridge said the the REIT was looking forward to working with some of the UK’s housing associations and hoped to enable ‘significant new investments’ in the sector which has faced a significant funding squeeze in recent years.

Trading in ordinary shares in Civitas are expected to commence on Friday 18 November.