Specialist commercial property investment manager Orchard Street has bought a purpose-built care home for £14.8m in an off-market deal.
It bought the freehold property, based in Leamington Spa, Warwickshire, from UK real estate investment company Aprirose.
The purchase price represented a net initial yield of 3.85%.
The property is let to Methodist Homes for the Aged on a 35-year term, with 27 years remaining and annual RPI-linked rent reviews subject to minimum uplifts of 2.5%.
Tom Chadwick, associate partner at Orchard Street, said: “This is a high-quality purpose-built care home located in a prosperous part of the UK.
“Owing to the long lease, strong operator and also supported by the demographic trends which continue to underpin the care home sector, we expect this to be an excellent long-term investment.”
