LONDON: Further to the Company’s £200 million equity issue announced on 13 June, the Board of Directors of LXi REIT, the specialist inflation-protected long income REIT, made certain acquisitions for a combined total investment of approximately £135 million, which reflects 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, comprise the following long-let and index-linked assets.
The Company is also in legals on a number of additional assets to deploy the balance of the proceeds of the capital raise, with further acquisition announcements expected to be made shortly.
The Company has acquired, by way of a pre-let forward funding, a new Aldi-led scheme in St Albans, Hertfordshire. The foodstore has been pre-let to Aldi Stores Limited, the principal UK trading company of the Aldi group, on a new, unbroken 25-year lease with five yearly rental uplifts fixed at 2% per annum compounded. Aldi is a leading discount supermarket, operating 10,000 foodstores across 20 countries.
The Company has acquired, by way of a pre-let forward funding, a new 78-bedroom Travelodge hotel and Costa Coffee shop in Workington, Cumbria.
The hotel has been pre-let on a new, unbroken 25-year lease to Travelodge Hotels Limited, the principal trading company of the Travelodge group, and the coffee shop has been pre-let to Costa Limited, the principal trading company of the Costa Coffee group, on a new, unbroken 15-year lease. Both leases benefit from five yearly rent reviews index-linked to the Retail Prices Index.
The Company is not developing the above two sites or assuming development risk and is forward funding each property on a fixed price basis. The Company will receive an income from the developers during the construction periods.
The Company has acquired, on a sale and leaseback basis, seven Q-Park car parks in strong city centre locations in London, Edinburgh, Glasgow, York, Manchester and Sheffield.
Each property has been leased back to Q-Park Limited, with a guarantee from its parent Q-Park N.V., on new, unbroken, 35-year leases, with annual rent reviews index-linked to the Retail Prices Index.
Q-Park is one of Europe’s leading car park operators, with over 880,000 parking spaces across 6,700 car parks in 10 European countries.
The Company has acquired a 91,000 sq ft distribution facility on a 10-acre site in Cannock, Staffordshire, a strong West Midlands logistics location.
The property benefits from a new, unbroken 20-year lease to Eddie Stobart Limited, with a guarantee from its parent ESLL Group Limited, with five yearly rent reviews index-linked to the Retail Prices Index.
The Company has acquired 14 family-oriented, food-led public houses in Cheshire, Manchester, Lancashire, Yorkshire, Staffordshire, Newcastle and County Durham; Greene King family pubs.
Each property has been let to Greene King plc, with 15-year unexpired and unbroken lease terms, with annual rent reviews to a fixed uplift of 2.5% per annum compounded.
The Company has acquired, on a sale and leaseback basis, a garden centre in Pennine, West Yorkshire.
The property has been leased back to Dobbies Garden Centres Limited, with a guarantee from its parent Dobbies Garden Centres Group Limited, on a new, unbroken 30-year lease, with annual rent reviews index-linked to the Retail Prices Index.