LXi REIT has announced the £8.4m acquisition of Priory Care Home in Leeds.
The property is fully let to Priory Elderly Care Limited, a subsidiary of Priory Investments Holdings Limited, a leading provider of mental health and elderly care services.
John White, Partner of LXi REIT Advisors Limited, 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.”
The lease is for 23 years with the next rent review due in March 2018.
Priory is a three-storey, 75 en-suite bed purpose-built home that was opened in 2010. The home is situated two miles to the east of Leeds city centre in the suburb of Osmondthorpe.
The acquisition is being funded from equity funds, with senior debt finance expected to be introduced in the near term. Completion is due to occur within the next week.
Priory Group, which is owned by Acadia Healthcare, operates 570 facilities with over 17,000 beds.