CareTrust agrees £1.1bn deal with LNT to acquire 45 UK care homes

LNT is selling a portfolio of 45 care homes, 21 of which are still in development

UK care home developer and operator LNT will sell 45 of its care homes in staggered sales. The first of these deals, the £576m purchase of 24 homes built in the past two years, closed on 1 October.

CareTrust has agreed to buy the remaining 21 homes, which are still under development, for around £504m when completed on a rolling basis throughout 2027.

CareTrust, listed on the New York Stock Exchange, funded the initial investment with forward equity settlement proceeds and a revolving credit facility.

“The chance to build a close relationship with LNT – one of the most productive and proven care home developers in the UK — in a way that is accretive, rather than dilutive, as the homes lease up, and with a defined path into a SHOP [senior housing operating portfolio] structure upon stabilisation, is what makes this check all the boxes for us,” said James Callister, CareTrust’s chief investment officer.

“These are brand new, purpose-built, private pay homes serving a market with a genuine shortage of modern care beds. We have structured it so that we are paid to be patient while the homes fill, and when we move to acquire the operating companies we underwrite all-in stabilised yields in the mid- to high-7% range,with room to grow as they are positioned for success for decades to come.

“This also materially improves the age, quality and configuration of our overall UK care home portfolio.”

Separately, CareTrust reported around £370m in other investments completed since its second-quarter earnings report, including three UK care homes for around $34m (25.7m).

The US firm entered the UK senior housing market in March 2025 when it agreed a £488m cash deal to acquired Care REIT, a UK REIT with a £679m care home portfolio.

In August, it also acquired 16 UK care homes in an off-market deal advised by Savills.