Further to the company’s £200 million equity issue announced on 13 June, the Board of Directors of LXi REIT , the specialist inflation-protected long income REIT, has announced a series of acquisitions for a combined total investment of approximately £135 million, which reflects a weighted average net initial acquisition yield of 5.7% (net of acquisition costs).
The acquisitions, which have been made individually from separate vendors and developers and include both pre-let forward fundings and built assets, comprise a number of long-let and index-linked assets.
The company is also in legals on a number of additional assets to deploy the balance of the proceeds of the capital raise, with further acquisition announcements expected to be made shortly.
The purchases are:
Aldi forward funding, St Albans The company has acquired, by way of a pre-let forward funding, a new Aldi-led scheme in St Albans, Hertfordshire. The foodstore has been pre-let to Aldi Stores Limited, the principal UK trading company of the Aldi group, on a new, unbroken 25-year lease with five yearly rental uplifts fixed at 2% per annum compounded.
Travelodge forward funding, Cumbria The company has acquired, by way of a pre-let forward funding, a new 78-bedroom Travelodge hotel and Costa Coffee shop in Workington, Cumbria.
The hotel has been pre-let on a new, unbroken 25-year lease to Travelodge Hotels, the principal trading company of the Travelodge group, and the coffee shop has been pre-let to Costa Limited, the principal trading company of the Costa Coffee group, on a new, unbroken 15-year lease. Both leases benefit from five yearly rent reviews index-linked to the Retail Prices Index.
Q-Park car parks The company has acquired, on a sale and leaseback basis, seven Q-Park car parks in strong city centre locations in London, Edinburgh, Glasgow, York, Manchester and Sheffield.
Each property has been leased back to Q-Park Limited, with a guarantee from its parent Q-Park N.V., on new, unbroken, 35-year leases, with annual rent reviews index-linked to the Retail Prices Index.
Eddie Stobart distribution facility, West Midlands The company has acquired a 91,000 sq ft distribution facility on a 10-acre site in Cannock, Staffordshire, a strong West Midlands logistics location.
The property benefits from a new, unbroken 20-year lease to Eddie Stobart Limited, with a guarantee from its parent ESLL Group Limited, with five yearly rent reviews index-linked to the Retail Prices Index.
Greene King family pubs The company has acquired 14 family-oriented, food-led public houses in Cheshire, Manchester, Lancashire, Yorkshire, Staffordshire, Newcastle and County Durham.
Each property has been let to Greene King plc, with 15-year unexpired and unbroken lease terms, with annual rent reviews to a fixed uplift of 2.5% per annum compounded.
Dobbies Garden centre, West Yorshire The company has acquired, on a sale and leaseback basis, a garden centre in Pennine, West Yorkshire.
The property has been leased back to Dobbies Garden Centres Limited, with a guarantee from its parent Dobbies Garden Centres Group Limited, on a new, unbroken 30-year lease, with annual rent reviews index-linked to the Retail Prices Index.
John White, partner of LXI REIT Advisors, said: “We are pleased to have swiftly and carefully deployed £135 million of the net proceeds of our recent £200 million capital raise in secure, long-let and index-linked assets. We look forward to investing the balance in short order from our advanced pipeline of additional assets, which are expected to deliver further value for our shareholders."
