Investor LXi REIT has bought a Bupa care home in Bristol for £13.8m.
The property, which provides nursing and residential care, has been let to Bupa on a long lease. The deal was funded using LXi’s Scottish Widows loan facility.
John White, partner of LXI REIT Advisors Ltd, 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. 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.’