7th Jan 2019 09:52
LONDON (Alliance News) - LXi REIT PLC said on Monday it has made a series of property disposals and acquisitions in the UK, along with agreeing a new 15-year term loan with Scottish Widows Ltd.
LXi has completed the GBP75 million loan and has fixed the all-in rate at 2.99% per annum until the facility's maturity at the end of 2033.
The real estate investment trust sold two of its Travelodge hotels, in Haverhill and Ipswich, to an unnamed buyer for GBP12.6 million, reflecting a low exit yield of 5.0%.
Using proceeds from the sale, LXi acquired two industrial properties in Birmingham and West Bromwich for GBP11.7 million, reflecting a 5.7% net initial yield.
The properties consist of two bus depots totalling 93,00 square feet and 102,000 square feet, including parking halls, workshops and refuelling areas.
The properties were acquired with new 25-year leases to West Midlands Travel Ltd, a subsidiary of FTSE 250-listed transport provider National Express Group PLC.
Also, LXi REIT has agreed to provide GBP12.2 million in forward funding for the pre-let development of an Aldi food-store anchored property in Evesham, Worcestershire.
A 18,578 square feet foodstore pre-let to discount retailer Aldi Stores Ltd will anchor the scheme.
There is also a 12,935 square feet unit pre-let to TJ Morris Ltd, which trades as discount retailer retailer Home Bargains, and a 10,000 square feet unit pre-let to TJX UK Ltd, trading as clothing retailer TK Maxx.
Planning consent has been granted, the lease agreements signed, and construction of the scheme is expected to be completed in July.
"We are pleased to have completed the disposal of two Travelodge hotels at a significant premium to acquisition cost and book value and to have immediately recycled the proceeds into two accretive industrial properties let to a strong tenant on 25 year, RPI-linked leases," said Simon Lee, partner of LXi REIT Advisers Ltd.
"Our new 15-year loan facility with Scottish Widows locks in a very attractive 2.99% all-in funding cost over the long term, reflecting the high quality and secure nature of our property portfolio. We continue to deploy the facility across a range of quality assets underpinned by long term leases, defensive sectors and robust tenants with accretive yields," Lee added.
Shares in LXi REIT were up 0.8% at 118.89 pence on Monday.
Related Shares:
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