LXI REIT takes aim at new assets with £75m share issue
LXI REIT is hoping to raise £75m via a share issue as the firm looks to target £140m of new assets, including supermarkets, industrial parks and garden centres.
The company said that it would issue approximately 60m new shares at 124.5p each, a 3% discount on yesterday’s closing value of 128.4p per share.
LXI, which hit the London Stock Exchange in 2017, said it had deployed the £843m raised in recent years and was now looking for more cash.
LXI REIT is hoping to raise £75m via a share issue as the firm looks to target £140m of new assets, including supermarkets, industrial parks and garden centres.
The company said that it would issue approximately 60m new shares at 124.5p each, a 3% discount on yesterday’s closing value of 128.4p per share.
LXI, which hit the London Stock Exchange in 2017, said it had deployed the £843m raised in recent years and was now looking for more cash.
“Consequently, the company has been considering a further equity raise to fund further investments in line with its investment policy and objective and with a view to delivering further value for its shareholders,” it said.
It added that advisers had singled out a “significant pipeline” of target assets, totalling around £140m, including supermarkets, industrial, drive-through coffee shops and garden centres. The pipeline assets have a long weighted average unexpired lease term to expiry of 21 years and a blended net initial yield of 5.5%, the company said.
Chairman Stephen Hubbard added: “This initial issue will enable the company to capitalise on its £140m pipeline of off-market investment opportunities.
“The properties are diversified across a range of defensive and structurally supported sub-sectors and let to high-quality tenant covenants. We expect these opportunities to deliver attractive returns to our shareholders going forward.”
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