LXi REIT has bought a portfolio of 23 nursery schools for £34m.
The off-market deal will see the schools leased back to KidsFoundation on new 30-year leases. The price reflects a net initial yield of 5.5%.
KidsFoundation is one of Europe’s leading providers of education and care services for children, with more than 900 facilities across the UK and northern Europe.
LXi used the proceeds from its £100m placing in July to fund the deal.
John White, partner at LXI REIT Advisors, said: “The portfolio provides LXI with highly secure, inflation-linked and diversified 30-year cashflows, supported by sustainable rents and strong residual values.”
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