LXi REIT plc £2.1 MILLION ACQUISITION OF A LONG-LET SUPPORTED LIVING PORTFOLIO
The Board of LXi REIT plc (ticker: LXI) is pleased to announce that the Company has completed the acquisition of the freehold interest in a portfolio of regulated long-let supported living properties located in Greater Manchester, Lancashire and Merseyside (the “Portfolio”).
The purchase price for the Portfolio is £2.1 million, reflecting a net initial yield of 6.0% (net of acquisition costs to the Company).
Each property is immediately income producing and has been let on a new 25-year lease, with no tenant break, to a specialist Registered Provider of social housing. The Registered Provider is regulated by the Homes and Communities Agency and receives its funding for the rent payments directly from the relevant local authority.
Each lease is subject to annual upward-only rent reviews index-linked to the Consumer Prices Index (uncapped) and the Registered Provider is responsible for the costs of repair, maintenance, insurance and outgoings.
The properties in the Portfolio comprise specialist, high quality supported living homes for individuals with physical and/or mental disabilities or other care needs.
The acquisition has been funded from equity resources, with senior debt finance to be introduced in the near term.