LXi REIT plc, a real estate investment trust incorporated in England and Wales, has acquired 11 foodstores and two discount stores from five different vendors/developers for a total cost of £61 million.
The acquisitions have been acquired at an attractive average net initial yield of 5.7% (net of acquisition costs) and with a strong and diversified tenant base in the form of Aldi, Lidl, Waitrose, Co-op, Iceland, B&M and The Range.
The acquisitions deploy the disposal proceeds of the group’s recently sold BCA facility in Corby at a yield which is materially higher than both the 4.45% exit yield on the BCA Facility and the Group’s latest portfolio valuation yield of 5.1%.
LXi REIT said the acquisitions are let or pre-let on long, index-linked or fixed uplift leases with low current rents (averaging £14 per sq ft) and low capital value pricing (averaging £230 per sq ft).
The group’s whole portfolio now has a long WAULT to first break of 22 years, with 96% index-linked or fixed uplift rent reviews and is well diversified across the following robust sub-sectors: Industrial (21%), Budget Hotels (21%), Foodstores and Essentials (20%), Healthcare (13%), Car Parks (8%), Pubs (5%), Drive-thru Coffee (4%) and Other (8%).