Leeds care home acquired by Lxi REIT in £8.4m deal

LXi REIT plc, the real estate investment company, has exchanged contracts to acquire the Priory Care Home, Leeds for £8.4m.

Purpose-built as a care home in 2010, the property spans three storeys with 75 en-suite bedrooms.

The care home is located approximately two miles to the east of Leeds city centre, in a residential area within the suburb of Osmondthorpe.

The acquisition is being funded from equity resources, with senior debt finance expected to be introduced in the near term. Completion is due to occur within the next week.

The property is fully let to Priory Elderly Care Limited and guaranteed by its parent company, Priory Investments Holdings Limited, which provides mental health and elderly care services.

The Priory Group is ultimately owned by NASDAQ-listed Acadia Healthcare which has a market capitalisation of $4bn and operates a network of over 570 facilities with over 17,000 beds.

John White, partner of LXi REIT Advisors Limited, commented: “We are pleased to have acquired the Priory Care Home, Leeds, which provides the Company with an attractive net initial yield of 6.3% and a long, secure income stream with rare annual RPI rent reviews.

“This acquisition, our tenth since IPO, means that the Company now has 12 strong tenants with exposure to six distinct sub-sectors and has deployed 80% of its net equity.”