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LXI REIT Acquires 11 Foodstores, Two Discount Stores in UK
Friday 27 November 2020

UK-based specialist real estate investment trust LXi REIT plc (LSE: LXI) has acquired 11 foodstores and two discount stores from five different vendors/developers for a total cost of GBP 61m (USD 81.15m), the firm said.

The acquisitions have been acquired at an attractive average net initial yield of 5.7% (net of acquisition costs) and with a tenant base in the form of Aldi, Lidl, Waitrose, Co-op, Iceland, B and M and The Range.

LXi said the acquisitions deploy the disposal proceeds of the group's recently sold BCA facility in Corby at a yield which is materially higher than both the 4.45% exit yield on the BCA Facility and the Group's latest portfolio valuation yield of 5.1%.

The acquisitions reflect the company's yield-disciplined focus on smaller sized foodstores which are currently the primary focus for our grocery tenants being right-sized for their preferred product range, but also offering online fulfilment through either or both of home delivery and click and collect.

The acquisitions are let or pre-let on long, index-linked or fixed uplift leases with low current rents (averaging GBP 14 per sq ft) and low capital value pricing (averaging GBP 230 per sq ft).

LXi said its whole portfolio now has a long WAULT to first break of 22 years, with 96% index-linked or fixed uplift rent reviews and is well diversified across sub-sectors.
Date Published: 27/11/2020