LXI buys three assets following stock exchange listing

LXI REIT has bought its first three assets for a combined £36.4m after listing on the London Stock Exchange last month. The biggest property was the Q-Park car park at Rockingham Street, Sheffield, which LXI purchased for £19.1m, reflecting a net initial yield of 5.2%. It also exchanged contracts to provide forward funding for two developments. The first was a new Travelodge hotel, drive-through Starbucks coffee shop and a Greggs bakery in Melksham, near Bath, for £6.2m, a net initial yield of 5.91%. The second forward-funded purchase was a manufacturing and office facility for GE Oil & Gas in Cramlington, Northumberland, for £11.1m and a net initial yield of 5.75%. Completion at the GE Oil & Gas office is expected in April, while the Travelodge will see a practical completion in February 2018. LXI REIT was listed on the stock market on 27 February and opened at 103p per share. It raised £138m after it announced its IPO, having initially targeted £200m. To send feedback, e-mail karl.tomusk@estatesgazette.com or tweet @ktomusk or @estatesgazette