Lxi REIT acquires portfolio of Yorkshire care homes in £3.8m deal

LXi REIT plc, the real estate investment company, has completed the acquisition of the a portfolio of regulated long-let supported living properties located in Yorkshire for £3.8m.

Each property is immediately income producing and has been let on a new 25 year lease, with no tenant break, to a specialist Registered Provider of social housing.

The Registered Provider is regulated by the Homes and Communities Agency and receives its funding for the rent payments directly from the relevant local authority.

The properties in the Portfolio comprise specialist, supported living homes for individuals with physical and/or mental disabilities or other care needs.

The acquisition has been funded from equity resources, with senior debt finance expected to be introduced in the near term.

The company has now also completed on the acquisition of the Priory Care Home in Leeds.

Simon Lee, partner of LXi REIT Advisors Limited, commented: “This supported living portfolio provides the Company with an attractive 6.0% net initial yield underpinned by unbroken 25 year, index-linked leases to a Registered Provider of social housing, and offers vulnerable adults high quality, long-term, safe and attractive community living environments.

“The acquisition, our eleventh since IPO, further underlines our approach to building a diversified, secure and index-linked portfolio, encompassing a very wide range of property sub-sectors, tenants and locations.”

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