Two Armagh care homes will form part of a £15m acquisition plan for a UK investment company
LXi REIT is behind the purchases, which include the freehold interest in two sites and the exchange of contracts to buy a third.
The three specialist care homes are designed specifically for the care of disabled people.
Each of the properties included in the £14.9m deal is fully let or pre-let to companies within the Priory Group, a provider of mental health and elderly care services.
The three homes – Apple Mews 1 and Apple Mews 2 in Armagh, and Edenmore in Jordanstown – will generate a total of £1m a year in rent.
The former is a newly built site with 36 bedrooms, which opened in February 2017, while the latter – known as Armagh 2 – is made up of 30 bedrooms and opened in 2012.
The third property will form an extension to the Armagh site and will comprise 34 bedrooms.
It has been fully pre-let, detailed planning consent is in place and construction works have commenced. Practical completion is scheduled for Q1 2018.
Work began on Apple Mews 2 around six months ago.
The major extension to the Apple Mews 1 care home is thought to have cost around £3.6m to build.
The Armagh care homes are designed for people with learning disabilities, autism and complex physical disabilities so that staff can provide appropriate nursing care to support the development of independence and life skills.
John White, partner at LXi REIT Advisors, said he was pleased to have completed the deal.
“This is the company’s first acquisition in Northern Ireland and further geographically diversifies our portfolio with an accretive net initial yield.”
