Orchard Street Investment Management has bought a residential care home in the West Midlands of England for a pension fund client.
Orchard Street said it bought the purpose-built care home in Leamington Spa, Warwickshire for £14.2m (€16.1m) from UK-based real estate investment company Aprirose.
The purchase price represents a net initial yield of 3.85%, it said.
The asset comprises 50 en-suite bedrooms across three floors.
Orchard Street said the freehold property is let to Methodist Homes for the Aged on a 35-year term with 27 years remaining.
Tom Chadwick, an associate partner at Orchard Street, said: “Owing to the long lease, strong operator and also supported by the demographic trends which continue to underpin the care home sector, we expect this to be an excellent long-term investment.
“We are pleased to have successfully closed our second care home transaction with Aprirose and continue to look for further long income opportunities.”