21st Feb 2022 11:07
(Alliance News) - LXi REIT PLC on Monday said it purchased several properties for GBP57 million at an accretive net initial yield of 5.3%.
The firm noted it funded the acquisitions from the proceeds of its recent GBP250 million equity capital raise. It has now deployed GBP144 million of the funds raised in the placing, which closed on February 9.
As part of the acquisitions, the London-based real estate investment trust said it bought a 77,000 square feet office in Dundee, Scotland through pre-let forward funding.
The office has been fully pre-let to London-based telecommunications company BT Group PLC, on a new, unbroken 17.5-year lease, it continued.
The lease also contains five-yearly consumer price index inflation-linked rental uplifts, capped at 3% per year and collared at 1% per year compounded.
Furthermore, LXi REIT bought five customer service, car storage and repair and maintenance facilities.
They are located in Chertsey, Northampton, Newcastle, Carlisle in England and in Cardiff, Wales and were purchased through a sale and leaseback with London-based online car retailer Cazoo Ltd.
Each property is fully let to Cazoo on a new, unbroken 20-year lease with five-yearly consumer price index linked rental uplifts, capped at 4% per year and collared at 2% per year compounded, the real estate investment trust said.
Shares were up 1.5% at 138.00 pence each on Monday morning in London.
By Abby Amoakuh; [email protected]
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