Triple Point Social Housing transfers leases on 38 properties

20th Aug 2024 09:10

(Sharecast News) - Triple Point Social Housing REIT announced on Tuesday that it has successfully transferred the leases of 38 properties, previously leased to Parasol, to Westmoreland Housing Association.

The London-listed firm said the properties represented 8.2% of its gross asset value, and 9.7% of its rent roll, as of 31 March.

It said the transfer, completed on 19 August, was part of a strategic move aimed at stabilising and enhancing rent collection.

Prior to the transfer, Parasol had been paying 60% of the full lease rent under an existing creditor's agreement.

Following the transfer, rent collection was expected to increase to between 75% and 85% of the existing full repairing and insuring (FRI) lease rent during an initial 12-month stabilisation period.

After that period, rent collection was anticipated to rise to at least 90%, helping to ensure the company's dividends were fully covered.

The board said the transfer process, which took four months, was carefully managed to prioritise resident welfare and engage proactively with regulators.

Triple Point said it was confident that Westmoreland would continue to provide high-quality services to the residents of the properties.

Westmoreland Housing Association, which manages 950 specialised supported housing homes, had shown a strong financial performance under its current management, delivering annual surpluses and growing its turnover to over £15m per year.

The association's improved financial health was expected to contribute positively to the management of the newly-acquired properties.

"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," said chair Chris Phillips.

At 0931 BST, shares in Triple Point Social Housing were up 0.08% at 62.65op.

Reporting by Josh White for Sharecast.com.