(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
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