LXi REIT spends £61m on foodstores and discount retail
LXi REIT has acquired 11 foodstores and two discount stores for £61m.
The REIT acquired the assets from five different vendors, at an average net initial yield of 5.7% and capital value of £230 per sq ft.
The stores are let to Aldi, Lidl, Waitrose, Co-op, Iceland, B&M and the Range at rents averaging £14 per sq ft.
LXi REIT has acquired 11 foodstores and two discount stores for £61m.
The REIT acquired the assets from five different vendors, at an average net initial yield of 5.7% and capital value of £230 per sq ft.
The stores are let to Aldi, Lidl, Waitrose, Co-op, Iceland, B&M and the Range at rents averaging £14 per sq ft.
LXi is forward funding the development of a 19,000 sq ft foodstore and 10,000 sq ft adjoining unit in Berwick-upon-Tweed, Northumberland, let to Aldi and Food Warehouse.
It has also acquired a 26,800 sq ft Lidl foodstore in Portsmouth, Hampshire, a 25,000 sq ft Waitrose in Poyton, Cheshire, and a portfolio of seven Co-Op stores in Blackpool, Glasgow, Pontypridd, Sandbach, Southport, Wallasey and Wrexham, from a mortgagee.
In Bradford, Yorkshire, the REIT has bought two discount stores spanning 72,000 sq ft. They were purpose built for the Range and B&M in 2019. The discount retailers pay an average rent of £7 per sq ft, with 19 years until the first break.
Foodstores now make up 20% of the REIT’s portfolio, with a further 21% in industrials and 21% in budget hotels. LXi now has a WAULT to first break of 22%, with 96% index-linked or fixed rent reviews.
To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette
Photo by Maureen McLean/Shutterstock (10629878p)
