LXi splashes £26m of new equity on foodstore fundings

LXi REIT has spent a £26m slug of capital from its recent £250m equity raise with the forward funding of two sites. The company has forward funded a 45,000 sq ft Tesco supermarket and a 22,000 sq ft Home Bargains in Houghton le Spring, Sunderland, and a Co-op foodstore in Horncastle, Lincolnshire. The acquisitions total £26m and reflect an accretive 5% net initial yield. The assets at Houghton Le Spring are set on a nine-acre site and come with 329 car parking spaces, as well as electric vehicle charging points. The supermarket is fully prelet to Tesco on an unbroken 20-year lease. The Home Bargains store is prelet to TJ Morris on an unbroken 15-year lease. In Horncastle, the Co-op has taken a new 25-year lease, with a one-off break right at year 15 and fixed rental uplifts of 2.5% per annum compounded every five years. LXi REIT said it had now deployed £170m since the capital raise earlier this month and had in solicitors’ hands “a range of further assets which will deploy the balance of the proceeds in short order”.   To send feedback, e-mail samantha.mcclary@eg.co.uk or tweet @samanthamcclary or @EGPropertyNews