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LXi REIT acquires three index-linked properties for £23m

LXi REIT has made a trio of acquisitions for a total of £23m, as it puts its recently announced revolving credit facility (RCF) to work.

All three properties are long-let and index-linked and reflect a weighted average net initial yield of 5.7%.

The company is also close to agreeing deals for further acquisitions that would see the balance of the £100m RCF fully deployed.

The three properties are:

  • The forward funding of a Premier Inn hotel, in Greater London. The new 85-bedroom Premier Inn hotel in Romford is let on a new, unbroken 25-year lease from completion of the building works, with five yearly rental uplifts in line with the Consumer Prices Index (CPI).
  • Forward funding of a commercial vehicle centre, in Birmingham. The new servicing and sales centre for Mercedes commercial vans and trucks will comprise 35,647 sq ft of warehouse, servicing, showroom and office space over two floors, on a four acre site. The property has been pre-let to Midlands Truck and Van, with a guarantee from its parent Ballyvesey Holdings, on a new 30-year lease from completion of the building works (with a one-off break in year 20), with five yearly rental uplifts in line with the Retail Prices Index (RPI).
  • An Aldi foodstore, in Lytham St Annes. The recently constructed 25,000 sq ft Aldi foodstore in Lytham St Annes, Lancashire, is let to Aldi on a long lease, with over 19 years unexpired to first break. The rental uplifts are fixed at 2.5% a year compounded and the current passing rent equates to a low £10/sq ft.

LXi is not developing the forward funding investments 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.

LXI : LXi REIT acquires three index-linked properties for £23m

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