Spending spree at LXi

£130m of acquisitions after successful fundraising

LXi REIT has wasted no time in deploying the £200m it raised in an equity issue on 13 June, and £135m has already been deployed at a weighted average net initial acquisition yield of 5.7%.

The acquisitions, which have been made individually from separate vendors and developers and include both pre-let forward fundings and built assets. Deals include forward funding a pre-let Aldi-led scheme in St Albans, Hertfordshire. The foodstore has been pre-let to Aldi on a new, unbroken 25-year lease with five yearly rental uplifts fixed at 2 per cent pa.

The company has also agreed a sale and leaseback with Q-Park on seven car parks in strong city centre locations in London, Edinburgh, Glasgow, York, Manchester and Sheffield. Each property has been leased back to Q-Park on new, unbroken, 35-year lease, with annual rent reviews index-linked to the Retail Prices Index.

LXi has bought 14 family-oriented, food-led public houses in Cheshire, Manchester, Lancashire, Yorkshire, Staffordshire, Newcastle and County Durham. Each property has been let to Greene King, with 15-year unexpired and unbroken lease terms, with annual rent reviews to a fixed uplift of 2.5 per cent pa.

And the Dobbies garden centre, in Pennine West Yorshire has been bought in another sale and leaseback with the operator agreeing a new, unbroken 30-year lease, with annual rent reviews index-linked to the Retail Prices Index.

LXi partner John White said: “We look forward to investing the balance in short order from our advanced pipeline of additional assets, which are expected to deliver further value for our shareholders.”

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