Business
Lease Transfer
Lease Transfer.
About this update from Social Housing Reit Plc
[{"type":"text","content":"\n\n20 August 2024\n \nTriple Point Social Housing REIT plc\n(the \"Company\" or, together with its subsidiaries, the \"Group\") \n\nLease Transfer \n\nFurther to the \"Portfolio Sale and Lease Transfer\" announcement made on 3 May 2024, the Board of Directors of Triple Point Social Housing REIT plc (ticker: SOHO) is pleased to announce the transfer of all 38 properties previously leased to Parasol (representing 8.2% of the Company's Gross Asset Value and 9.7% of the rent roll as at 31 March 2024) to Westmoreland Housing Association (\"Westmoreland\").\nThe transfer completed on 19 August and, up to the point of transfer, Parasol continued to pay rent in accordance with the existing creditor's agreement, being 60% of full lease rent. Following the completion of the transfer, we expect rent collection to increase to between 75% to 85% of existing FRI lease rent during an initial stabilisation period (expected to last approximately 12 months), and thereafter up to at least 90% of existing FRI lease rent. In turn, this will help ensure that dividends paid by the Company are fully covered.\nThe transfer is the culmination of an extensive four-month process focused on prioritising the welfare of residents, enabling proactive engagement with the Regulator by both Parasol and Westmoreland, and ensuring the transfer was undertaken in a way that maximised rental income. As well as increasing rent collection, the Board is confident that Westmoreland will provide good services to residents in the Group's properties.\nWestmoreland manages 950 specialised supported housing homes. The current management team was appointed in 2020 and has successfully restructured Westmoreland, delivering four years of annual surplus and growing turnover in a sustainable way to over £15 million per annum whilst steadily increasing Westmoreland's cash position.\nChris Phillips, Chair of Triple Point Social Housing REIT, commented:\n\"Having successfully completed the transfer of properties, we look forward to working closely with Westmoreland to ensure that rent collection is increased and good services continue to be delivered to the properties' residents.\"\nENDS.\n \nFOR FURTHER INFORMATION ON THE COMPANY, PLEASE CONTACT:\n \n\n\n\n\n Triple Point Investment Management LLP\n (Investment Manager)\n\n\nTel: 020 7201 ...