LXi forward funds more Costa drive-throughs

LXi REIT has forward funded two more drive-through coffee outlets as well as buying a new click-and-collect facility. The REIT, which earlier this week said it would forward fund nine Costa outlets in Morrisons car parks, has added two sites to that portfolio, in Edinburgh and Dumbarton. That takes the drive-through portfolio to 24 outlets. The company has also struck a deal for an 18,000 sq ft click-and-collect, storage, sales and customer services facility in Doncaster, let to online car retailer Cazoo. The site has about 20 years unexpired until first break. The deals are valued at a combined £6.1m and have an average net initial yield of 5.75%. LXi REIT has now deployed £151m on deals since a £125m fundraise in March. In an interview in this week’s EG, LXi REIT Advisors managing partner Simon Lee said the March equity issue further diversified the company’s shareholder base, with US and European investors buying shares for the first time. “What we started to tap into this time around was the US and European understanding of the US triple net REIT,” Lee said. “If we are [trading] at a 10-12% premium, that’s a good place to be. But you can see potential for further growth on that if, as is likely, we get more scale and we get more REIT specialists in.” To send feedback, e-mail tim.burke@eg.co.uk or tweet @_tim_burke or @EGPropertyNews Use EG Radius to compare with other deals in the A3 use class around Edinburgh >>