LXi REIT launches share issue to fund new opportunities
LXi REIT has launched a share issue to raise £100m to fund further acquisitions, after investing the £293m of equity and debt capital it has raised since its IPO in February last year.
An investment adviser has identified a pipeline of additional UK assets leased to institutional grade tenants on long-term leases with rents indexed upwards only in line with inflation, which meet LXi’s investment policy, the firm said.
Negotiations concerning the acquisition of some of these assets have already begun and, in some cases, exclusivity agreements entered into, it added.
LXi REIT has launched a share issue to raise £100m to fund further acquisitions, after investing the £293m of equity and debt capital it has raised since its IPO in February last year.
An investment adviser has identified a pipeline of additional UK assets leased to institutional grade tenants on long-term leases with rents indexed upwards only in line with inflation, which meet LXi’s investment policy, the firm said.
Negotiations concerning the acquisition of some of these assets have already begun and, in some cases, exclusivity agreements entered into, it added.
The assets, which total over £200m in value, are diversified across a wide range of subsectors, including budget hotels, discount food, industrial and offices.
They benefit from a long weighted average unexpired lease term to first break of 23 years, a blended net initial yield of approximately 5.75%, and are structured as both prelet forward funding and standing investments.
Around 88,914,318m New Ordinary Shares are expected to be issued, at an issue price of 112.75p per New Ordinary Share.
LXi’s directors have also reserved the right to increase the size of the share issue to £175m if demand exceeds the £100m target.
The share issue is conditional on the approval by shareholders at a general meeting on 11 October.
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