TIDMLXI
RNS Number : 6084Y
LXI REIT PLC
14 May 2021
14 May 2021
LXi REIT plc
(the "Company", the "Group" or " LXi REIT ")
ACCRETIVE LONG INCOME ACQUISITIONS
The Board of LXi REIT (ticker: LXI), the specialist
inflation-protected long income REIT, is pleased to announce the
following acquisitions (the "Acquisitions"), which will further
utilise the Group's revolving credit facility.
The Acquisitions, which are for a total cost of GBP6.1 million,
benefit from an accretive average net initial yield of 5.75% (net
of acquisition costs), a long average unexpired lease term to first
break of 18 years, are let to strong tenant covenants on
sustainable rents, and 100% of the income is index-linked to RPI
inflation through contractual rental uplifts.
These latest Acquisitions take the Company's total funding
deployed/committed to GBP151 million since its GBP125 million
capital raise in March 2021, across 12 separate transactions in
structurally supported sectors, with a long weighted average
unexpired lease term to first break of 21 years, and with 100% of
the rent roll being inflation-linked (97% to RPI and 3% to
CPI).
Cazoo click & collect facility, Doncaster
The Company has exchanged contracts to acquire a click &
collect, storage, sales and customer services facility in
Doncaster. The property, which comprises 18,000 sq ft, is let to
Cazoo, with just under 20 years unexpired until first break and
benefits from RPI rental uplifts reviewed on a five yearly basis,
collared at 1% pa and capped at 3% pa.
Cazoo is a leading online car retailer, founded and run by Alex
Chesterman, the founder of Zoopla and LoveFilm, which now employs
2,000 people across the UK, France, Germany and Portugal. Cazoo is
pioneering the shift to online car buying and since its launch has
already delivered over 14,000 cars to consumers across the UK.
The property is one of a number of new facilities which Cazoo is
rolling out across the UK to provide its customers with a click
& collect option, in addition to home delivery.
The site is well-located, fronting the A630 Wheatley Hall Road
which forms part of Doncaster ring road, close to the junction with
the A18 Thorne Road. The property offers good visibility from the
roadside with over 25,000 vehicles passing daily.
Costa coffee drive-thru portfolio forward funding
The Company has exchanged contracts on the pre-let forward
funding of two additional drive-thru coffee units in Edinburgh and
Dumbarton, to be developed for and pre-let to Costa Limited on new,
long term leases. The rent will increase in line with RPI inflation
on a five yearly basis.
The assets are being built on the car parks of Morrisons
foodstores, with good roadside prominence and dense catchment
populations. The Company will now own a portfolio of 24 drive-thru
coffee units located in Morrisons car parks.
Costa Limited, which was acquired by Coca-Cola in 2019 from
Whitbread PLC in a $4.9 billion transaction, is the largest coffee
shop operator in the UK with over 2,681 units. Coca-Cola is listed
on the New York Stock Exchange with a market cap of $235
billion.
FOR FURTHER INFORMATION, PLEASE CONTACT:
LXI REIT Advisors Limited Via Maitland/AMO
Simon Lee (Partner, Fund Manager)
John White (Partner, Fund Manager)
Peel Hunt LLP
Luke Simpson/Liz Yong 020 7418 8900
---------------------------------
J efferies International
Ed Matthews/Tom Yeadon 020 7029 8000
---------------------------------
Maitland/AMO (Communications Adviser) 07747 113 930
James Benjamin lxireit-maitland@maitland.co.uk
---------------------------------
The Company's LEI is: 2138008YZGXOKAXQVI45
NOTES:
LXI REIT plc 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 robust 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 an annual dividend of 6.0 pence per
ordinary share for the 12-months commencing 1 April 2021*.
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.
The Company is a constituent of the FTSE 250, FTSE EPRA/NAREIT
and MSCI indices.
Further information on the Company is available at
www.lxireit.com
* These are guidance levels or 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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ACQDBGDULGBDGBX
(END) Dow Jones Newswires
May 14, 2021 02:00 ET (06:00 GMT)
Lxi Reit (LSE:LXI)
Historical Stock Chart
From Apr 2024 to May 2024
Lxi Reit (LSE:LXI)
Historical Stock Chart
From May 2023 to May 2024