LONDON-REIT Asset Management has exited the nursing-home sector after selling a euro 157-million ($193-million) portfolio. The REIT has sold 27 properties let to Ashbourne Homes for euro 157 million ($193 million) reflecting a 6.5% yield. The properties have been sold to private Middle Eastern investors and the leases have a further 13 years to run. They are subject to two more minimum fixed increases, in 2008 and 2013.

The trust bought the 29-strong Ashbourne portfolio in 1998 in a euro 97-million ($120-million) sale-leaseback. REIT manager Kevin McGrath said at the time that the deal was part of a strategy to build a euro 296-million ($364-million) low-risk portfolio in anticipation of a downturn in the property market.

But now the group wants to expand aggressively in India and Germany and decided to exit the sector to capitalize on increased demand. Earlier this year it sold two of the homes from the Ashbourne portfolio to Domo for euro 12.4 million ($15.3 million) at a 6.5% yield.

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