LXi makes £23m purchases

LXi REIT has struck deals for three properties worth a combined £23m, in Romford, Birmingham and Lancashire. The deals reflect a weighted average net initial acquisition yield of 5.7%, net of acquisition costs. In Romford, LXi bought an 85-bedroom Premier Inn hotel through a prelet forward funding. The agreement covers an unbroken 25-year lease from development completion. The company has also exchanged contracts on a new servicing and sales centre for Mercedes commercial vans and trucks in Smethwick, Birmingham. It is also structured as a prelet forward funding, and will comprise 35,647 sq ft of warehouse, servicing, showroom and offices over two floors, on a four-acre site. The property has been prelet to Midlands Truck and Van, with a guarantee from its parent Ballyvesey Holdings, on a 30-year lease from completion. The third deal is for a recently constructed, 25,000 sq ft Aldi supermarket in Lytham St Annes, Lancashire. Terms are more than 19 years unexpired to first break; current passing rent is £10 per sq ft. These deals are being funded by the company’s new revolving credit facility, announced in July. To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette