Social Housing REIT has entered a conditional agreement to acquire the UK’s largest independent senior living rental portfolio from Residential Secure Income plc for £108.3 million. The proposed acquisition will be funded through a combination of cash and SOHO shares, issued at EPRA NTA.
The proposed acquisition is expected to deliver:
- High single digit EPS accretion in first full year
- Increased scale and share liquidity, taking GAV to c.£830m
- Attractive, fixed-rate debt at 3.46% for 17-years, creating a sector-leading combined weighted average debt cost of 3.15% for 9.1 years
Michael Carey, Managing Director of Atrato Group, Investment Manager of Social Housing REIT, commented:
“This announcement is a landmark moment for SOHO and represents a significant strategic step forward for the company. The proposed acquisition demonstrates SOHO’s ability to utilise its paper to deliver both much needed growth and earnings accretion for shareholders.”