LXi REIT plc
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Issue 324 : Jan 2025

LXi REIT plc

LXi REIT Plc Has Announced That They Have Managed to Acquire a Priory Care Home

LXi REIT plc, the property investment company has announced that they have recently managed to acquire a Priory Care Home. The property that the company as acquired is located in Leeds and it is thought that the cost of the investment was in the region of £8.4 million. It is thought that the acquisition figure is a reflection of the net initial yield for the Leeds Care Home which has been measured at 6.3%. The property in question has been let to Priory Elderly Care Limited. The property has also been guaranteed by the parent company Priory Investments Holdings Limited. Priory is thought to be one of the leading providers of care services in the mental health and elderly care sectors. Priory Group is also owned by a larger company, and is ultimately a part of Acadia Healthcare, which is a NASDAQ-listed business. Acadia works to offer more than 17,000 beds over 570 different facilities. The lease of the Leeds care home currently as an unexpired term of just below 23 years. This means that the lease term expires in March 2040. This lease is offered on the building without a break and it is thought that the agreement will include annual upward only rent reviews will also be linked to the Retail Price Index. The next rent review for the building is in March 2018. The care home that is a part of this transaction was built in 2010 for the purpose that it is currently being used for. The Priory Care Home in Leeds offers 75 en-suite bedrooms that are spread across three storeys and is considered in a good location on the east side of Leeds City Centre. The Priory Care home is situated two miles out of the city centre in an area that is mainly residential and is a part of the Osmondthorpe. The transaction on the Priory Care Home is expected to complete at some point in the next week.

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