Flurry of care home deals as trust agrees £4.5m acquisition

Real estate investment trust LXi has acquired a portfolio of supported living properties in Yorkshire.

It has acquired the long-let portfolio for £4.5m, reflecting a net initial yield of 6.0%.

Each property is immediately income producing and has been let on a new 25-year lease, with no tenant break, to a specialist registered provider of social housing. The provider is regulated by the Homes and Communities Agency and receives its funding for the rent payments directly from its local authority.

It is the latest acquisition in the region of supported living facilities, with laso Health Care also acquiring a Doncaster care home.

The Church and Manor View Care Home on Manor Road, Doncaster and the business is registered to care for 54 residents providing nursing, residential and dementia care. It employs more than 60 local staff.

Akshat Jaganmohan, managing director of LHCL, said: “We are very excited to be expanding the group and our priority is improving the quality of life for those who choose to reside with us, maintaining their privacy, dignity and ability to manage their own lives.

“Through new services, we will be able to provide an improved residential experience and support more families with the care of their loved ones.”

Justin Parker, Barclays business banking manager commented: “We are delighted to work with Akshat and his team and provide a full banking package for the acquisition. This deal demonstrates Barclays understanding of the sector and commitment to healthcare businesses and we look forward to supporting the group to achieve their ambitious growth plans for the future.”