19th Jul 2019 12:56
(Alliance News) - LXi REIT PLC said Friday it has made six long-let, index-linked acquisitions for a combined total of GBP55 million and an average net initial acquisition yield of 5.83%.
As a result, LXi said its GBP200 million raising in June is now fully deployed.
LXi has acquired, by way of pre-let forward funding, a Lidl store in Cornwall, a Lidl store in Greater Manchester, a Premier Inn in the Scottish Highlands, a care home in the Midlands - which is fully let to Bupa Care Homes - a waste management facility, fully let to Veolia, in Poole and a PGL activity centre in Lancaster.
Following these acquisitions, the company's portfolio has an average net initial yield of 5.8%. The portfolio is 100% let with a long weighted average unexpired lease term to first break of 22 years.
LXi said 97% of its portfolio's rental income has index-linked - with 63% tied to the retail price index, 20% the consumer price index and 14% with fixed uplifts.
The investor's portfolio is now weighted 23% to hotels, 21% industrial, 17% healthcare, 14% leisure, 13% discount foodstores and 7% car parks.
"We are pleased to have deployed fully, swiftly and prudently the net proceeds of the company's recent capital raise, in attractively-priced, secure and index-linked assets that are diversified by strong tenant covenants across robust property sectors, which we anticipate will deliver further value for our shareholders," said Simon Lee, partner at LXi REIT Advisors Ltd.
Shares in LXi REIT were 0.2% higher in London on Friday at 128.03 pence each.
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