LXi spends last £73m of capital raise
LXi REIT has spent the last £73m of its recent £250m capital raise on an Asda store in Birmingham and a training facility in Staffordshire.
The inflation-protected long-income specialist said the off-market deals reflected a 5.4% net initial yield, against the current portfolio valuation yield of 4.5%.
The 73,000 sq ft Asda supermarket, in Halesowen, has 22 years to run until its first lease break, with five-yearly rental uplifts at 3%. The store, built in 2008, has a 600-space car park and is the dominant store in the area.
LXi REIT has spent the last £73m of its recent £250m capital raise on an Asda store in Birmingham and a training facility in Staffordshire.
The inflation-protected long-income specialist said the off-market deals reflected a 5.4% net initial yield, against the current portfolio valuation yield of 4.5%.
The 73,000 sq ft Asda supermarket, in Halesowen, has 22 years to run until its first lease break, with five-yearly rental uplifts at 3%. The store, built in 2008, has a 600-space car park and is the dominant store in the area.
LXi has also bought a 127,000 sq ft training and conference facility in Stone, Staffordshire, let to Compass Group for the next 17 years. The deal to buy the 18.5-acre site follows LXi’s purchase of Compass Milton Keynes last month. LXi noted that, while rents are low at £12 per sq ft and annual increases fixed at 2.5%, there was strong potential for alternative uses for the site, including residential development.
LXi said “a range of further assets” were in solicitors’ hands, which will be funded through existing debt facilities.
The REIT now has 191 properties which are 100% let or prelet on long-term, triple-net leases to 70 tenants, with a WAULT to first break of 22 years. Some 74% of the rental income is inflation-linked, and 22% contains fixed uplifts.
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