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LXI REIT Closes GBP 5m Acquisition of Long-Let Supported Living Portfolio in UK
Monday 17 July 2017

17 July 2017 - UK-based property investor LXi REIT plc (LSE: LXI) has completed the acquisition of the freehold interest in a portfolio of regulated long-let supported living properties located in Surrey, Somerset and Leicestershire, UK, the company said.
 
The purchase price for the portfolio is GBP 5m (USD 6.55m), 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 Price 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.
 
LXi REIT said the acquisition has been funded from equity resources, with senior debt finance to be introduced in the near term.
 
The company invests in UK commercial property assets let, or pre-let, on very long (typically 20 to 30 years to expiry or first break), inflation-linked leases to a wide range of strong tenant covenants across a diverse range of property sectors.
Details
Date Published: 17/07/2017
Target: Freehold interest in a portfolio of regulated long-let supported living properties located in Surrey, Somerset and Leicestershire, UK
Country: UK
Deal Size: 6.55m (USD)
Sector: Construction/Real Estate
Type: LBO
Financing: Cash
Status: Closed
Vendor:
Buyer: LXi REIT
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