LXi buys Priory care homes for £14.9m

LXi REIT has acquired two Priory Group care homes in Northern Ireland and exchanged contracts to buy a third for a total price of £14.9m.

The purchases reflect a net initial yield of 6.5% and the leases have a weighted average unexpired term of 29 years without a break and are subject to 2.5% annual rental uplifts.

The properties are located in Armagh and Newtonabbey in Northern Ireland.

John White, partner at LXi REIT, said: “This is the company’s first acquisition in Northern Ireland and further geographically diversifies our portfolio with an accretive net initial yield.”

Richard Harris, head of alternative capital markets at Strutt & Parker, who acted on behalf of the seller Emerald Construction, said: “We are pleased to have completed a further sale of care home assets to LXi REIT following the sale of a Priory care home in Leeds for £8m earlier this year. This transaction shows further investor confidence in the prime healthcare real estate investment market”.

Strutt & Parker and O’Kane Commercial acted on behalf of Emerald Construction and Baron Associates represented LXi REIT.

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