LXi REIT has put green clauses into the leases of the 122 Travelodge hotels it acquired as part of its merger with Secure Income REIT.
The company has regeared the leases across the 122 sites, inserting rent review caps and collars at 4% and 1% per annum and extending the unexpired lease terms by a weighted average of nine years. No rent-free periods have been granted and no rent reductions made.
The REIT said it had also agreed green lease provisions around the sharing of energy, water, recycling and waste data; co-operating on the environmental, social and governance strategies of the landlord and tenant; and ensuring the landlord has the necessary rights to enter the properties to make environmental performance improvements.
