Care home snapped up in £8.4m deal
A real estate investment trust has acquired a Priory group care home in Leeds for £8.4m.
LXi has bought the site, which is let to Priory Elderly Care and guaranteed by its parent company Priory Investments, a provider of mental health and elderly care services.
The Osmondthorpe building was purpose-built as a care home in 2010 and has three storeys with 75 en-suite bedrooms.
The deal reflects a net initial yield of 6.3% and the Priory has an unexpired lease term of 23 years, finishing in 2040.
The Priory group is owned by NASDAQ-listed Acadia Healthcare and has a market capitalisation of $4bn with 570 facilities in its network.
John White, partner of LXi REIT Advisor, 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.”
