LXI REIT secures £55m for future acquisitions

LXI REIT has agreed a £55m loan with Scottish Widows to fund its acquisition pipeline after deploying most of the equity it raised in its IPO in February. The 12-year fixed-rate loan is repayable on 3 July 2029 with an all-in rate of 2.93% per year. It is secured against both the built and forward-funded assets the company has bought since its admission to the market at the start of the year and represents a loan-to-value ratio of 30%. LXI raised £138m of equity in its IPO, 85% of which it has now used in building up a portfolio. The company also said it is considering issuing up to 200m shares before 5 February 2018, depending on market conditions. At about 107p per share, this represents a share issue of up to £218m. Simon Lee, a partner at LXI’s investment adviser LXI REIT Advisors, said: “This 12-year loan facility with Scottish Widows provides the company with a long-dated senior financing package at a very low fixed rate and offers the company substantial operational flexibility. “The rate is highly accretive to the company’s anticipated future dividend and mitigates potential interest rate and refinancing risks for the 12-year period. Scottish Widows’ involvement, and its stated appetite to grow further with the company, is very encouraging.” To send feedback, e-mail karl.tomusk@egi.co.uk or tweet @ktomusk or @estatesgazette