LXi REIT has announced its acquisition of a Bupa care home in Bristol for £13.8m.
The property, which is situated in an affluent residential suburb of Bristol to the north west of the city centre, close to Clifton and the Downs, is fully let to Bupa on a long lease with more than 23 and a half years remaining.
John White, Partner of LXi REIT Advisors Limited, said: “We are pleased to have completed this off-market acquisition which is accretive to the Company in terms of yield, lease length, rent review profile and tenant strength. The initial yield of 6.4% is over 340 basis points higher than the cost of our long-term debt facility which is funding the purchase.
“The Company remains well positioned with an excellent platform and investment pipeline of secure, long-let index-linked real estate assets to deliver attractive inflation-protected income and capital returns to our shareholders.”
LXi REIT said the home, which provides nursing and residential care predominantly for privately funded patients, benefitted from high underlying occupancy levels.
The acquisition was funded using the Company’s Scottish Widows loan facility.