LXi to raise £75m

LXi REIT aims to raise £75m in a new shares issue, and is sourcing capital for new acquisitions. LXi will issue 56.4m new shares at 133p per share. The price is a 2.3% premium to the company’s IFRS net asset value of 130p. It is a discount of 7.9% to the closing price of 144.4p on 23 June. LXi’s investment advisor has identified a £125m pipeline of investment opportunities. These assets have an average net initial yield of 5.5% and a WAULT of over 25 years. The pipeline includes two education-focused sale and leaseback portfolios, a forward-funding opportunity to acquire the long lease of assets pre-let to Lidl, Co-op and Sainsbury’s, and a drive-thru coffee portfolio, also on a forward-funding basis. LXi said all of these opportunities are available in the near term. The company currently has a £1.1bn portfolio across 140 assets in industrial, grocery and healthcare, and has recently added new garden centres to the mix. Chairman Stephen Hubbard said: “The properties in the pipeline are diversified across a range of defensive and structurally supported sub-sectors and let to high-quality tenant covenants.” To send feedback, e-mail emma.rosser@eg.co.uk or tweet @EmmaARosser or @EGPropertyNews