LXI REIT IPO raises £138m

Newly-listed LXI REIT, which focuses on long-term income, has raised £138m as it launched on the London Stock Exchange. The shares were issued at 100p per share. LXI REIT, chaired by Stephen Hubbard, UK chairman of CBRE, had hoped to raise £200m from the listing. It is the latest of a growing number of firms to invest in secure assets and will target what it sees as long-term, inflation-protected commercial property, with 20 to 30-year leases, institutional clients and upward-only rent reviews. It said it may invest in fixed-price forward-funded developments, provided they are prelet to an acceptable tenant and full planning permission is in place, but it will not undertake any direct development activity nor assume direct development risk. Hubbard said: “We are pleased with the strong response from a broad range of investors to our initial public offering. The proceeds of the issue will enable the company to complete on its substantial investment pipeline of diversified UK property assets that benefit from very long-term (typically 20 to 30 years) index-linked leases let or prelet to institutional-grade tenants. We expect to be fully deployed within six months, providing our new shareholders with the potential of a highly attractive inflation-protected dividend as well as capital growth.” Peel Hunt is acting as sole sponsor, broker, placing agent and intermediaries offer adviser to the company. • To send feedback, e-mail shekha.vyas@estatesgazette.com or tweet @ShekhaV or @estatesgazette