LXi forward funds Reading garden centre
LXi REIT has exchanged contracts to acquire a 94,000 sq ft garden centre in Reading let to the UK’s largest operator, Dobbies.
It has agreed to forward fund the development for £19m, reflecting a net initial yield of 5.5%.
Dobbies has prelet the space on a 35-year lease, with no break right and CPI plus 1% per annum rental uplifts.
LXi REIT has exchanged contracts to acquire a 94,000 sq ft garden centre in Reading let to the UK’s largest operator, Dobbies.
It has agreed to forward fund the development for £19m, reflecting a net initial yield of 5.5%.
Dobbies has prelet the space on a 35-year lease, with no break right and CPI plus 1% per annum rental uplifts.
The seven-acre site is located in Shinfield, Reading. The development will replace an existing smaller garden centre. It will be built with sustainable materials and incorporate energy efficient features with solar panels, rainwater harvesting and EV charging points.
The REIT will fund development through its revolving credit facility. The scheme is expected to complete in spring 2022 and will bring the portfolio to four garden centres. The company is predominately focused on smaller roadside foodstores and industrial units.
LXi said a large benefit of garden centres is their flexible planning consent, which allows a wide range of products, including food. They are also counted as essential retail and have continued to trade through the last two national lockdowns.
The REIT has also announced two appointments to its team. Michael Maddox has joined as assistant fund manager, with previous roles at Aviva Investors and KFIM. Charlotte Price joins as financial controller and has experience at BDO.
Read more: The EG Interview: LXi REIT’s grande plans
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Image from LXi REIT
