LXi REIT Buys Portfolio Of Stores For GBP61 Million Total

(Alliance News) - LXi REIT PLC on Thursday said it has acquired a portfolio of eleven food stores ...

Alliance News 26 November, 2020 | 10:06AM
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(Alliance News) - LXi REIT PLC on Thursday said it has acquired a portfolio of eleven food stores and two discount stores for a total of GBP61 million.

The FTSE 250-listed real estate investment trust stated the properties - purchased from five different parties - were acquired at an average net initial yield of 5.7%, adding they are let or pre-let on long, index-linked or fixed uplift leases with low current rents averaging GBPP14 per square foot and low capital value pricing averaging GBP230 per square foot.

The properties acquired by LXi include a 26,800 square-feet food store in Portsmouth fully let to Lidl UK GMBH with 22 years until expiry and 17 years until first break; a 25,000 square-feet Waitrose foodstore in Cheshire; two B&M and The Range discount stores comprising 72,000 square feet in Bradford; and a 19,000 square-feet food store fully pre-let to Aldi Stores Ltd.

It has also acquired a portfolio of seven Co-Op food stores in Blackpool, Glasgow, Pontypridd, Sandbach, Southport, Wallasey and Wrexham. Each property is let to the Co-Operative Group Ltd with over 16 years unexpired to first break and with annual rental uplifts fixed at 2.3% per annum.

LXi said added its entire portfolio now has a long weighted average unexpired lease term to first break of 22 years, with 96% index-linked or fixed uplift rent reviews.

Shares in LXi REIT were trading 1.3% lower at 118.60 pence each on Thursday morning in London.

By Ife Taiwo; ifetaiwo@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
LXI REIT Ord 97.95 795 -

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