UK REIT LXi has announced the acquisition of two separate portfolios of care homes and supported living properties for a total of £30.3 mln (€34 mln).
The purchases, which are both being funded with equity resources following the company's second share issue last month, involve a package offive purpose-built are homes in Leicestershire and Lincolnshire for £28.5 mln reflecting a 6.5% net initial yield.
Each of the properties is fully let to Prime Life, an established care operator with over 1,800 beds across 60 homes in the UK. The leases are immediately income producing and have an unexpired term of 31 years (expiring November 2048), without a break.
Furthermore, the company bought a supported living portfolio for £1.8 mln, or a 6.0% NIY. The assets in Lancashire and Yorkshire are let on new 25-year leases, with no tenant break, to a specialist Registered Provider of social housing.
'The Company has now deployed 92% of the net proceeds of its second issue of shares announced on 12 October 2017 and we are in solicitors' hands on further acquisitions which will fully absorb the outstanding balance of the fundraise in the next few weeks,' said Simon Lee, partner of LXi REIT Advisors.
Since the company's IPO at the end of February, the company has deployed a total of £234 mln of equity and debt capital across 29 acquisitions at an average net initial yield of 6.0% and with a weighted average unexpired lease term to first break of over 24 years.
