Care homes acquired in £3.8m portfolio deal

Real estate investment trust LXi has acquired a portfolio of Yorkshire care homes in a £3.8m deal.

The long-let assisted living properties have been let on new 25-year leases with no tenant break, to an unnamed provider of social housing.

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

The deal reflects a net initial yield of 6.0%

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

Simon Lee, Partner of LXi REIT Advisors, 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.”

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