LXi completes £138m investment of IPO proceeds

David Parsley

LXi REIT, the property investment group chaired CBRE’s Stephen Hubbard, has invested all the £138m raised from its float in February.

The company, which targets properties with long, inflation-linked leases, is also in solicitors’ hands on additional acquisitions that will fully absorb the £55m debt finance to be drawn under its Scottish Widows 12-year loan facility in the coming weeks.

The average net initial yield across the portfolio bought so far is 5.9%, with the average unexpired lease term to first break at 23 years, and 95% of the portfolio is on inflation-linked rental uplifts. The investments are spread across seven sectors, including discount retail, budget hotels, car parks, industrial, supported living, care homes and restaurants/coffee shops. Tenant include Aldi, Costa, General Electric, Home Bargains, Premier Inn, The Priory Group, Q-Park, SIG, specialist Housing Associations, Starbucks and Travelodge.

The properties are also spread across 14 different counties in England, and were bought in 17 separate transactions, with an average lot size of £8m.

Hubbard said: “We are very pleased with the company’s progress since listing on 27 February 2017. The quality, security, diversification and income yield of the company’s assets have met and, in many cases, exceeded our original expectations and will provide a strong platform for future growth.”

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