LXi REIT fully deploys proceeds from €200m equity raise

UK LXi REIT has announced a series of new acquisitions for a total of £62.4 mln (€71 mln), excluding costs.

With the purchases, which are 'highly accretive' to the company's portfolio yield, the company said it has fully deployed the proceeds from its recent £175 mln equity raise.

The assets have a weighted average unexpired lease term to first break of 22 years. The weighted average net initial acquisition yield of the acquisitions is 5.7%.

They include five Travelodge budget hotels bought for a total of £45.2 mln, reflecting a 5.8% net initial yield. The properties are located in Aberdeen (97 bedrooms), Brighton (94), Liverpool (105), Llanelli (51) and Nuneaton (40).

In addition, the UK REIT has bought an industrial facility in Newbury, Berkshire for £17.2 mln, reflecting a 5.5% net initial yield rising to 6.0% at the next five yearly rent review, which is due in two years. The property is fully let to Snell Advanced Media, and guaranteed by its parent Belden Inc., a Nasdaq listed company with a market capitalisation of $2.5 bn.

To finance further acquisitions, LXi REIT has also agreed terms for a new, 15-year fixed-rate term loan facility with Scottish Widows, acting in partnership with Lloyds Bank Commercial Banking. The new £75 mln loan facility is interest-only and benefits from a low margin of 1.55% per annum.


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