LXi REIT has sold three assets for £17m and recycled the proceeds into the acquisition of two foodstores for £15m.
The group has sold its sole office, a long-let property in Cambuslang, Glasgow occupied by the local council, for £8m, reflecting a yield of 4.2%.
It has also disposed of a portfolio of 11 long-let social housing assets for a combined sum of £8.5m, reflecting a 5.2% yield.
The final sale was a plot of land adjacent to its Travelodge hotel in Llanelli to a petrol filling station operator for £500,000. The land was not used by the hotel and the sale has not reduced its rental level or capital value and thus represents an additional net receipt for the Company from land which had zero book value.
Acquisitions
LXI has exchanged contracts on the pre-let forward funding acquisition of a Lidl foodstore in West Bridgford, Nottinghamshire. The foodstore has been fully pre-let to Lidl on a 25-year lease (with a one-off break right at year 15), with five yearly rental uplifts in line with annually compounded RPI inflation (capped at 3% per annum and collared at 1% per annum).
The company is also forward funding EV charging points at the property, pre-let on an unbroken 25-year, RPI-linked lease to a specialist EV operator. The site comprises just over four acres and has 180 car parking spaces.
The second acquisition is an Aldi foodstore in Lytham St Annes. The store, which was purpose built for Aldi in 2014, was bought out of administration.
There is more than 18 years unexpired to first break on the lease, which also benefits from five yearly fixed uplifts of 2.5% per annum compounded. The fixed uplifts will provide rental growth of over 13% in three years’ time.
LXI : LXI REIT shuffles portfolio with series of transactions