February 25, 2019 Finance

LXI Reit plc acquisition


The Board of LXi REIT plc, the specialist inflation-protected very long income REIT, has announced that the Company has acquired a Bupa care home in Bristol for £13.8 million, reflecting a 6.4% net initial yield (net of acquisition costs to the Company).

The Property is fully let to Bupa Care Homes (ANS) Limited and guaranteed by its parent Bupa Care Homes (CFG) plc, on a long lease with over 23.5 years unexpired to first break and benefits from annual rent reviews increasing in line with RPI inflation (collared at 2% per annum and capped at 5% per annum).

The tenant and guarantor are part of the Bupa group, a leading investment grade international healthcare company, which runs a substantial range of care homes, health centres, dental centres and hospitals and provides health insurance and workplace health services, serving 32 million customers in 190 countries.

The Property, comprising a modern, high quality care facility providing nursing and residential care predominantly for privately funded patients, benefits from high underlying occupancy levels.

The Property is well situated in an affluent residential suburb of Bristol, to the north west of the city centre, close to Clifton and the Downs. Bristol is the largest commercial centre in the south west region, benefiting from excellent road links due to its location at the intersection of the M4 and M5 motorways and is also easily accessible by rail, air and sea.

The acquisition has been funded using the Company’s Scottish Widows loan facility.


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