LXi signs Lidl and Lok’n’Store in Basildon

LXi REIT has signed a prelet forward funding deal with Lidl and Lok’n’Store. The £19.5m deal for a site in Basildon, Essex, opposite the Phipps Hill retail park, reflects an average net initial yield of 5.1%. The supermarket element of the development has been prelet to Lidl on an unbroken 20-year lease, with five-yearly, RPI-inflation-linked uplifts, collared at 1% pa and capped at 3% pa. The self-storage facility has been fully prelet to Lok n’ Store on an unbroken 25-year lease, with five-yearly rental uplifts at a fixed growth rate of 2.5% pa. John White, partner at LXI REIT Advisors, said: “We see continuing strength in the discount grocery and self-storage sectors and these off-market forward fundings provide long-term leases with imbedded rental growth and the potential for capital growth, underpinned by robust tenants and residual values.” To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews