LXi REIT has made six new property acquisitions- LXi REIT has purchased six new properties with total consideration of £62.4 million (excluding costs). This has the companies £175 million equity raise on 12 October 2018 fully deployed. All six properties are 100% linked to the retail price index. The weighted average unexpired lease terms to first break for the properties is 22.1 years. The properties weighted average net initial acquisition yield is 5.7%. The acquisitions consists of five Travelodge Hotels and an industrial facility.
The Travelodge Hotels are located in: Aberdeen, Brighton, Liverpool, Llanelli, and Nuneaton. The total consideration for the hotels is £45.2 million, which reflects a 5.8% net initial yield (net of acquisition costs to LXi). The hotels will still be lent to Travelodge Hotels Limited who is the principal trading company of Travelodge hotel group. The WAULT to break is 24 years and each property will have five yearly rent reviews which are linked to the retail price index. All properties have high occupancy levels, and are centrally located in the cities they are in.
LXi has all acquired an industrial facility in Newbury, Berkshire for £17.2 million which reflects a 5.5% net initial yield (net of acquisition cost to LXi). The yield will rise to 6.0% at the next five yearly rent review which is due in two years. The property is being lent to Snell Advanced Media Limited, and is guaranteed by its parents Belden Inc. The lease is an unbroken 17 year unexpired lease term with five yearly rent reviews which are linked to the retail price index (capped at 3% pa collared at 15% pa compound). Snell Advanced Media Limited has been located on the property for 30 years. The property is in a good location right off of Turnpike Road, close to Newbury Town and Newbury Business Park. Newbury is the regions principal commercial and retail centre, it has excellent infrastructure and transportation links. The building is 101,377 sq ft on 6.3 acres of land.
LXi has also agreed to terms and received credit committee approval with Scottish Windows Limited 15 year fixed rate loan facility. LXi is acting in partnership with Lloyds Bank Commercial Banking, to gear the proceeds of its recent £175 million equity raise. When fully drawn, this will extend LXi’s average debt maturity profile to 12.6 years across all facilities. The new loan facility is interest only and benefits from 1.55% per annum. The total loan amount is £75 million which, when fully drawn, will take LXi to a 30% loan-to-value level.
LXi has also completed the construction of the pre-lent Aldi-anchored scheme in Bradford and the pre-lent Travelodge-anchored scheme in Camborne.
LXI-LXi REIT has made six new property acquisitions