LXi REIT plc has acquired a Bupa care home in Bristol for £13.8 million, reflecting a 6.4% net initial yield (net of acquisition costs to the Company).
The acquisition has been funded using the Company’s Scottish Widows loan facility.
The Property is fully let to Bupa Care Homes (ANS) Limited and guaranteed by its parent Bupa Care Homes (CFG) plc, on a long lease with over 23.5 years unexpired to first break and benefits from annual rent reviews increasing in line with RPI inflation (collared at 2% per annum and capped at 5% per annum).
The Property, comprising a modern, high quality care facility providing nursing and residential care predominantly for privately funded patients, benefits from high underlying occupancy levels.
“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.” says John White, Partner of LXI REIT Advisors Limited.
