LXi to forward fund Costa drive-thrus and Midlands shed

LXi REIT has exchanged contracts on forward funding a portfolio of nine Costa drive-thrus and an industrial facility in the Midlands for a combined £36m. The acquisitions are leased on RPI-linked rents, with 22 years to first break and at a 5.25% net initial yield. The drive-thru coffee shops located in Morrisons car parks across the UK will be developed for and prelet to Costa. When the deal completes, the REIT will own 22 drive-thru coffee shops in Morrisons car parks. Last year it forward funded 12 Starbucks drive-thrus and one Costa drive-thru. The company has also bought an industrial facility in the Midlands, let to an unnamed operator on an unbroken 25-year lease. LXi said the rent would be reviewed on a five-yearly basis in line with RPI inflation. The full proceeds of LXi’s £125m equity capital raise last month has been deployed through the deals. John White, partner at LXI REIT Advisors, said: “These acquisitions are in structurally supported sectors and further enhance the quality and diversification of our business, including providing further scale to our drive-thru coffee portfolio.”   To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews