LXi completes £55m acquisitions

LXi REIT has completed six long-let acquisitions from developers and investors for a total of £55m. The six deals reflect a combined net initial acquisition yield of 5.83%. The REIT has now fully deployed the proceeds of its £200m equity issue, set out in June, at a weighted average net initial acquisition yield of 5.74%. LXi said this compared favourably to its latest valuation yield of 5.13% at the end of March. The portfolio is now 100% let with 44 tenants across 10 sectors. The purchases included the prelet forward fundings of a new Lidl-led scheme in Camborne, Cornwall, and a new Lidl store in Hattersley, Greater Manchester, both on 25-year leases. It also forward-funded a new Premier Inn hotel in Pitlochry, in the Scottish Highlands, on a 25-year lease and fixed-price basis. Additionally, it bought a care home let to BUPA Care Homes in the Midlands on a long lease with more than 23 years unexpired to first break; a Veolia waste management facility in Poole, Dorset, on a 25-year lease; and an outdoor activity centre in Lancaster, Lancashire, in a sale-and-leaseback deal with PGL Travel, on a 35-year lease. Hotels now account for 23% of the portfolio, while industrial amounted to 21%. Healthcare was 17%; leisure 14%; discount foodstores 13%; and car parks were 7%. To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette