LXI REIT forward-purchases Lidl-anchored scheme in Andover
LXI REIT has exchanged contracts to forward purchase the pre-let development of a Lidl foodstore, along with drive-thru units for Starbucks and Greggs, at Andover in Hampshire for £8.05m, reflecting a 5.5% net initial yield.
The 22,432-sq ft foodstore has been pre-let to Lidl on a 25-year lease with a tenant break right at year 15, with five yearly fixed rental uplifts of 2% per annum compounded.
The Starbucks unit has been pre-let on a 20-year lease with five yearly rent reviews index-linked to RPI inflation and the Greggs unit has been pre-let on a 15-year lease with five yearly rent reviews to open market value.
The property, which benefits from 176 parking spaces on a 3.5 acre site, lies two miles to the east of Andover town centre, adjacent to the A3093 which connects directly to the A303 dual carriageway. The building works are due to complete in June 2019.
John White, partner of LXI REIT Advisors said: “We are continuing to deploy the balance of our new Scottish Widows loan facility and are in solicitors’ hands on a range of further accretive pre-let forward funding investments.”