Priory Care Home Has Been Acquired By LXi REIT Plc

Priory Care Home Has Been Acquired By LXi REIT Plc

Priory Care Home, a care home that offers 75 en-suite bedrooms across three floors has been acquired by LXi REIT plc. The transaction is expected to be complete at some point over the course of the next week and hopefully that the acquisition will be successful for LXi REIT plc and the Care Home. This investment company focuses on investing on property assets that are part of the commercial sector of the UK market. LXi REIT plc also invests in properties that are pre-let or have very long leases that are also linked to inflation. It is thought that the company works across a wide range of different sectors in order to invest.

The Priory Care Home is located two miles to the east of Leeds City Centre and has been acquired by LXi REIT plc for £8.4 million as a consideration of the 6.3% net initial yield. The property is situated in a mainly residential area and is a part of the area of Osmondthorpe. The Priory Care Home was built for purpose in 2010 and is thought to be in a good and central location. This property is currently being let by Priory Elderly Care Limited, and is guaranteed by Priory Investments Holdings Limited. These companies are a part of the larger Acadia Healthcare which is a company that is NASDAQ listed and offers 17,000 beds over 570 facilities. Priory has the reputation of being a leading provider of mental health and elderly care services.

The property that has been involved in the transaction has an unexpired lease of around 23 years. The Leeds Care Home property lease term expires in March 2040. This lease term has been taken on without a break and it is thought that the rent for the property will be subject to annual reviews that will be upward only and index linked on to the Retail Price Index. The next review for the rent of the priory Care Home in Osmondthorpe in Leeds is March next year.

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