LXI REIT PLC Update on Pre-let Forward Funding Investments (2869Z)
December 14 2017 - 2:00AM
UK Regulatory
TIDMLXI
RNS Number : 2869Z
LXI REIT PLC
14 December 2017
14 December 2017
LXi REIT plc
(the "Company" or "LXi REIT")
UPDATE ON PRE-LET FORWARD FUNDING INVESTMENTS
The Board of LXi REIT plc (ticker: LXI) is pleased to announce
the following positive forward funding updates.
The Company has now completed the land acquisitions for the
pre-let forward funding properties in Swindon, Bradford and
Chesterfield, in relation to which the Company had exchanged
contracts, as previously announced. The acquisitions follow the
successful granting of planning consents and satisfaction of other
acquisition conditions. The construction works will commence in the
next few weeks.
-- The Swindon property has been pre-let to Travelodge on an
unbroken 25-year index-linked lease, with ancillary leases to
Starbucks and Subway, and is being forward funded on a fixed-price
basis by the Company at a 5.8% net initial yield (GBP8.3 million
total commitment).
-- The Bradford property has been pre-let to Aldi on an unbroken
20-year index-linked lease, with ancillary leases to Home Bargains,
Heron Foods (part of B&M), Starbucks and Greggs, and is being
forward funded on a fixed-price basis by the Company at a 6.2% net
initial yield (GBP11.1 million total commitment).
-- The Chesterfield property has been pre-let to Premier Inn
(with a guarantee from Whitbread Group plc) on an unbroken 25-year
index-linked lease and is being forward funded on a fixed-price
basis by the Company at a 5.2% net initial yield (GBP6.9 million
total commitment).
The building works to construct the Travelodge hotel in
Melksham, which the Company has forward funded, have now officially
completed.
The Company is also pleased to report that the construction
works for its pre-let forward funding projects in Armagh (Priory
Group care home), Camborne (Travelodge hotel), Cramlington (GE
manufacturing facility) and Middlesbrough (Premier Inn hotel) are
all progressing well and are on schedule.
The Company receives licence fees from the developers until
completion of the building works. The Company is not developing the
sites or assuming development risk.
The Company's LEI is: 2138008YZGXOKAXQVI45
FOR FURTHER INFORMATION, PLEASE CONTACT:
LXI REIT Advisors Limited Via Newgate Communications
John White (Partner, Fund
Manager)
Simon Lee (Partner, Fund Manager)
----------------------------------- ---------------------------------
Peel Hunt LLP Tel: 020 7418 8900
Luke Simpson
----------------------------------- ---------------------------------
Newgate Communications (PR Tel: 020 7680 6550
Adviser) Email: lxireit@newgatecomms.com
James Benjamin
Anna Geffert
Lydia Thompson
----------------------------------- ---------------------------------
NOTES:
The Company invests in UK commercial property assets let, or
pre-let, on very long (typically 20 to 30 years to expiry or first
break), inflation-linked leases to a wide range of strong tenant
covenants across a diverse range of property sectors.
The Company may invest in fixed-price forward funded
developments, provided they are pre-let to an acceptable tenant and
full planning permission is in place. The Company will not
undertake any direct development activity nor assume direct
development risk.
The Company is targeting a minimum annual dividend of 5 pence
per ordinary share, starting from the financial period commencing 1
April 2018, with the potential to grow the dividend in absolute
terms through upward-only inflation-protected long-term lease
agreements, and is targeting a net total shareholder return of 8
per cent. plus per annum over the medium term(1) .
The Company, a real estate investment trust ("REIT")
incorporated in England and Wales, is listed on the premium listing
segment of the Official List of the UK Listing Authority and was
admitted to trading on the main market for listed securities of the
London Stock Exchange in February 2017.
Further information on the Company is available at
www.lxireit.com
Note 1: these are targets only and not a profit forecast and
there can be no assurance that they will be met.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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