LXi REIT has acquired two separate portfolios of care homes and supported living properties for £30.3m.
The company is paying £28.5m for a 31-year let portfolio comprising five care homes in Leicestershire and Lincolnshire, reflecting a net initial yield of 6.5%. The second acquisition is a 25-year let supported living portfolio in Lancashire and Yorkshire for £1.8m at a 6% net initial yield.
LXi said the purchases are being funded by equity resources, with senior debt finance expected to be introduced in the near term.
Each of the properties is fully let to care operator Prime Life, which provides specialist facilities and services for elderly care, high dependency dementia and also for younger residents with learning disabilities, mental illnesses and physical disabilities.
The leases have an unexpired term of 31 years (expiring November 2048), without a break, and are subject to annual upward-only reviews index-linked to the Retail Prices Index.
Simon Lee, partner at LXi REIT Advisors, said: “The company has now deployed 92% of the net proceeds of its second issue of shares announced on 12 October 2017 and we are in solicitors’ hands on further acquisitions which will fully absorb the outstanding balance of the fundraise in the next few weeks.
“Since the company’s IPO on 27 February 2017, the company has deployed a total of £234m of equity and debt capital across 29 acquisitions at an average net initial yield of 6% and with a weighted average unexpired lease term to first break of over 24 years.”
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