LXI REIT buys Glasgow Aldi and Gloucester garden centre

LXI REIT has bought a new Aldi supermarket in Glasgow and a garden centre in Gloucester in deals with a combined value of £24m. The 122,000 sq ft garden centre is let to Dobbies, the largest operator in the UK and an existing LXI REIT tenant. It has a 35-year lease unexpired to first break and gets RPI rental uplifts, reviewed on annually with a collar of 1% pa and a cap of 4% pa. The property also sells 3,000 items of Sainsbury’s grocery and household products, as part of a joint venture between Dobbies and Sainsbury’s, which has been rolled out recently across the garden centre company’s estate. In Glasgow, LXI has exchanged contracts on the forward purchase of a new 17,000 sq ft Aldi store. The site is prelet to Aldi on a new lease with 16 years until first break, and sits adjacent to Ibrox stadium, home of Scottish football club Rangers. The rent will increase in line with RPI inflation on a five-yearly basis, with a collar of 1% pa and a cap of 2.5% pa. The current rent equates to £14.80 per sq ft. The off-market purchases reflect an average net initial yield of 5.45% and a long average unexpired lease term of 29 years. To send feedback, e-mail alex.daniel@egi.co.uk or tweet @alexmdaniel or @estatesgazette