LXi REIT goes on £135m spending spree

LXi REIT has announced a series of acquisitions with a combined value of £135m. Following the company’s £200m equity issue earlier this month, the company has made various acquisitions which reflected a net initial acquisition yield of 5.7%. Through prelet forward funding, the REIT has acquired a new Aldi-anchored scheme in St Albans, Hertfordshire, and a 78-bedroom Travelodge hotel and Costa Coffee shop in Workington, Cumbria. The supermarket has been prelet to Aldi on a 25-year lease with five-yearly rental uplifts fixed at 2% per annum compounded. The hotel has been prelet on a 25-year lease to Travelodge Hotels and the coffee shop has been prelet to Costa on a 15-year lease. LXi REIT has also acquired seven Q-Park car parks in London, Edinburgh, Glasgow, York, Manchester and Sheffield. Each location has been leased back to Q-Park on a 35-year lease. The group has also bought a 91,000 sq ft distribution centre in Cannock, Staffordshire, which has been let to haulier Eddie Stobart for 20 years. In addition, 14 Greene King pubs have been bought in Cheshire, Manchester, Lancashire, Yorkshire, Staffordshire, Newcastle and County Durham. Each property has been let to Greene King for 15 years. Finally, a Dobbies Garden centre in Pennine, West Yorkshire, has been acquired on a sale-and-leaseback basis. The property has been leased back to Dobbies Garden Centres on a 30-year lease. John White, partner at LXi REIT Advisors, said: “We are pleased to have swiftly and carefully deployed £135m of the net proceeds of our recent £200m capital raise in secure, long-let and index-linked assets. “We look forward to investing the balance in short order from our advanced pipeline of additional assets, which are expected to deliver further value for our shareholders.” To send feedback, e-mail lucy.alderson@egi.co.uk or tweet @LucyAJourno or @estatesgazette