LXi buys £60m Sainsbury’s site in share deal

LXi REIT has added a Sainsbury’s supermarket in Middlesbrough to its portfolio in a £58.9m deal. The 127,000 sq ft store, and its 16-acre freehold site, is fully let to Sainsbury’s with 19 years until its first break. LXi bought the property from one of its shareholders, Laxmi Nivaria, paying 88% of the value in new shares and a further £7m in cash. The deal represents a net initial yield of 4.9%, but an inflation-linked rent review in 2025 will push that to 5.7%. Argos, part of the Sainsbury’s group, has space on the site, while the Food Warehouse, B&M, KFC and Costa have sublet space from Sainsbury’s. LXi said the site has good opportunities for asset management as well as ESG initiatives. To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews