LXi REIT has announced the £14.9m acquisition of three Priory Group care homes in Northern Ireland.
The deal follows LXi REIT’s £8.4m acquisition of a Priory Group care home in Leeds (see LXi REIT in £8.4m Leeds care home acquisition).
John White, Partner of LXi REIT Advisors Limited, said: “We are pleased to have acquired three modern Priory Group care homes in Northern Ireland, which provide the Company with an attractive net initial yield of 6.5% and a secure 29 year income stream with guaranteed annual rental uplifts.
“This is the Company’s first acquisition in Northern Ireland and further geographically diversifies our portfolio with an accretive net initial yield.”
The purpose-built care homes for individuals with mental and/or physical disabilities are located in Armagh and Newtonabbey, in Northern Ireland.
The Newtonabbey property comprises a newly built facility with 36 bedrooms, which opened in February 2017. The Armagh property is a recently built facility with 30 bedrooms, which opened in 2012.
The third property will form an extension to the existing Armagh property and will include 34 bedrooms. Detailed planning consent is in place and construction works have commenced, with practical completion scheduled for Q1 2018.
Each of the properties is fully let or pre-let to the Priory Group, a leading provider of mental health and elderly care services.