LXi unveils £109m purchases
LXi REIT is buying five properties in separate deals totalling £109m, after closing its latest capital raise at £175m.
The amount, which excludes costs, covers retail, hotel and logistics sites in Edinburgh, East Fife, Plymouth, Corby and Carlisle.
The company added that further deals are “in solicitors’ hands” that will fully deploy the £175m capital raised.
LXi REIT is buying five properties in separate deals totalling £109m, after closing its latest capital raise at £175m.
The amount, which excludes costs, covers retail, hotel and logistics sites in Edinburgh, East Fife, Plymouth, Corby and Carlisle.
The company added that further deals are “in solicitors’ hands” that will fully deploy the £175m capital raised.
The largest purchase is a £60m deal for a 121-acre car storage facility in Corby, Northamptonshire. It reflects a 5.25% net initial yield, which is expected to rise to more than 6% at the next five-yearly rent review.
The property is let to vehicle distributor BCA Group Europe on an unbroken 18-year unexpired lease term, with rent reviews linked to the retail prices index. BCA’s brands include WeBuyAnyCar.
The REIT has also bought a 247-bedroom Jurys Inn hotel in Plymouth for £30m at a 5.7% yield. The property is fully let to Jurys Hotel Management with an unbroken 24-year unexpired lease agreement, with RPI-linked rent reviews.
LXi has agreed to forward-fund the prelet development of a 70-bedroom Travelodge hotel at Edinburgh Park, in the South Gyle Business District, on a fixed-price basis. The development, due to complete in Q3 2019, represents total investment of £6.6m at a 5.4% yield.
The property has been fully prelet to Travelodge on an unbroken 25-year lease from completion of the building works, with five yearly rent reviews linked to the consumer prices index.
The REIT has also exchanged contracts to provide forward funding for the prelet development of a 19,310 sq ft Lidl supermarket and 20,000 sq ft B&M discount store to be built at Cowdenbeath, East Fife, for £8.m, reflecting a 6% yield.
Lidl’s 25-year lease terms begins from completion of works (with a tenant break right at year 15), with five-yearly, CPI-linked rent reviews.
The B&M property has been fully prelet on an unbroken 15-year lease from completion of works, with five-yearly, upward-only, open-market rent reviews.
In a separate retail asset purchase, the company has bought a 33,500 sq ft store let to the Range in Carlisle for £4.3m, reflecting a 6% yield.
The property is fully let on an unbroken 19.5-year unexpired lease term, with fixed five-yearly rental uplifts of 2% pa. The rent amounts to £8 per sq ft.
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