LXi hits acquisition trail after closing £250m fund raise
LXi REIT has announced a swathe of acquisitions days after closing an upsized fund raise.
Last week the company wrapped up a £250m equity raise, after scaling the target up from £125m. The long-income-focused company has now confirmed nine acquisitions funded by the equity issue and said it is “in solicitors’ hands” on yet more.
Together, the nine deals, most of which were struck off-market, total £87m and reflect a 5.1% net initial yield.
LXi REIT has announced a swathe of acquisitions days after closing an upsized fund raise.
Last week the company wrapped up a £250m equity raise, after scaling the target up from £125m. The long-income-focused company has now confirmed nine acquisitions funded by the equity issue and said it is “in solicitors’ hands” on yet more.
Together, the nine deals, most of which were struck off-market, total £87m and reflect a 5.1% net initial yield.
Among the most notable is a 160,000 sq ft Compass training facility in Milton Keynes, which the company has agreed to buy from AIM-listed Circle Property for £34.5m. The asset is Circle’s largest and, given its scale, will be put to a Circle shareholder vote scheduled for 9 March.
LXi has also bought three Co-op Group convenience stores in Norwich, Aston and Washington, all with new 20-year leases and fixed rental uplifts of 2.5% per annum compounded every five years.
It has acquired a health and racquets club in Hamilton, let to David Lloyd Leisure with 25 years unexpired until first break. The passing rent is £6.70 per sq ft and increases annually in line with RPI inflation, capped at 4% per annum.
In York, LXi has bought a two-storey car park with 385 spaces. Operator Q-Park, an existing LXi tenant, holds the site on a long lease with 21 years unexpired to the first break. The rent increases annually in line with RPI inflation, capped at 4% per annum.
The company is forward funding a Sainsbury’s convenience store in Bewdley, let to the supermarket on a 15-year lease, with five-yearly CPI inflation-linked rental uplifts.
In Exeter, it has bought a 44-bedroom Premier Inn, let on a long lease with 16 years unexpired to first break.
The final asset is a customer service, car storage and repair and maintenance facility in Edinburgh, bought in a sale and leaseback deal with online car retailer Cazoo.
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