LXi REIT has listed on the London Stock Exchange. Its IPO has raised £138.15m before costs. The company is targeting attractive inflation-protected income and capital returns through a diversified portfolio of very long-let and index-linked UK property assets.
LXi REIT is targeting a minimum annual dividend of 5 pence per Ordinary Share, starting from the financial period commencing 1 April 2018 (with the potential to grow through upward-only inflation-protected long-term lease agreements). It is targeting a net total shareholder return of 8 per cent. plus per annum over the medium term.
LXi REIT’s Investment Advisor is LXi REIT Advisors Limited, which is owned by the principals, shareholders and directors of Osprey Equity Partners Limited. The company says that it already identified a substantial pipeline which should allow capital to be substantially invested or committed within six months following admission. However, it will not undertake any direct development activity nor assume direct development risk. Annual fees paid to the Investment Advisor are 0.75% based of market capitalisation up to £500m falling to 0.65% above £500 million. There is no performance fee.
About LXi REIT
LXi REIT is a real estate investment trust (REIT). It is incorporated in England and Wales, is listed on the premium listing segment of the Official List of the UK Listing Authority and was admitted to trading on the main market for listed securities of the London Stock Exchange in February 2017.
LXi REIT invests in UK commercial property assets let, or pre-let, on very long (typically 20 to 30 years to expiry or first break), inflation-linked leases to a wide range of strong tenant covenants across a diverse range of property sectors. The Company says that it may invest in fixed-price forward funded developments, provided they are pre-let to an acceptable tenant and full planning permission is in place but that it will not undertake any direct development activity nor assume direct development risk.
LXi REIT lists on the London Stock Exchange raising £138m : LXI