Listed UK commercial property investor LXi REIT has bought a care home in south-west England for £13.8m (€15.9m).
LXi said the property in Bristol is fully let to Bupa Care Homes on a long lease with over 23.5 years unexpired.
The acquisition has been funded using the company’s Scottish Widows loan facility.
John White, a partner of LXI REIT Advisors, 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.”
White said the initial yield of 6.4% is over 340 basis points higher than the cost of the company’s 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.”