LXi REIT fully invested looks to gear up

LXi REIT fully invested looks to gear up – The Board of LXi REIT has announced that the company has now fully deployed the net proceeds of its GBP138 million IPO since listing on 27 February 2017. They are also in solicitors’ hands on additional acquisitions which will fully absorb the GBP55 million debt finance to be drawn under its Scottish Widows 12-year loan facility in the coming weeks.

The headline statistics for the acquired assets are:

  • Attractive average net initial property yield of 5.90%;
  • A wide spread (of just under 300 basis points) between (i) the 2.93% per annum all-in fixed rate payable on the Company’s new 12-year loan facility with Scottish Widows, the signing of which was announced on 4 July 2017 and (ii) the current average net initial property yield of 5.90%;
  • Long weighted average unexpired lease term to first break of 23 years;
  • 95% inflation-linked rental uplifts;
  • 16 individually strong tenants, including Aldi, Costa, General Electric, Home Bargains, Premier Inn, The Priory Group, Q-Park, SIG, specialist Housing Associations, Starbucks and Travelodge;
  • Seven defensive and robust property sectors, including discount retail, budget hotels, car parks, industrial, supported living, care homes and restaurants/coffee shops, providing multi-sector diversification;
  • Significant geographic diversification across 14 different counties in England; and
  • The properties have been acquired via 17 separate purchase transactions, with an average lot size of GBP8 million and a good mix of pre-let forward funding, forward commitment and built asset structures.

Stephen Hubbard, Chairman of LXI REIT plc, commented: “We are very pleased with the company’s progress since listing on 27 February 2017.  The quality, security, diversification and income yield of the company’s assets have met and, in many cases, exceeded our original expectations and will provide a strong platform for future growth.”

LXI : LXi REIT fully invested looks to gear up

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