LXi REIT makes acquisitions for combined investment of £55m

LXi REIT makes acquisitions for combined investment of £55m

LXi REIT has agreed deals for properties at locations in the North East, Essex, Kent and the East Midlands.

The acquisitions, for a combined £55m, are being funded by LXi REIT's new revolving credit facility.

The deals include a pre-let forward funding for a Aldi-led scheme in Berwick-upon-Tweed, Northumberland and a pre-let forward funding of a new 75-bedroom Travelodge hotel in Sandwich, Kent.

The foodstore has been pre-let to Aldi Stores , on a new, unbroken 20-year lease, while the Travelodge has been pre-let on a new, unbroken 25-year lease from completion of the building works.

LXi REIT has also acquired, by way of a pre-let forward funding, a new 70-bedroom Premier Inn hotel in Saffron Walden, Essex. The hotel has been pre-let to Premier Inn Hotels on a new 25-year lease (with a tenant break right at year 20) from completion of the building works.

Through another pre-let forward funding, LXi REIT has acquired a new 82-bedroom Premier Inn hotel in Worksop, Nottinghamshire, which is also the subject of a new 25-year lease (with a tenant break right at year 20).

LXi REIT is not developing the four forward funding investments or assuming development risk and is forward funding each property on a fixed price basis. The company will receive an income from the developers during the construction periods.

Finally, LXi REIT has acquired a purpose-built 178,617 sq ft industrial warehouse in Newton Aycliffe, Durham which is fully let to Gestamp Tallent and guaranteed by its parent, Automotive Chassis Products UK Ltd, on a long lease with just under 20 years unexpired to first break.

"We are pleased to be acquiring, predominantly on a forward funding basis, these attractively-priced assets let on long leases to strong tenant covenants across robust sectors, which are expected to provide further diversified, secure and inflation-linked income and capital growth potential," said LXI REIT Advisors partner Simon Lee. 

"The attractive entry yields provide a substantial spread to both the company’s latest portfolio valuation yield and the low cost of our new revolving credit facility which is funding these acquisitions."

LXi REIT invests in UK commercial property assets let, or pre-let, on very long, inflation-linked leases to a wide range of strong tenant covenants across a range of robust property sectors.

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