LXI REIT PLC Acquisition (8737T)
October 18 2017 - 1:00AM
UK Regulatory
TIDMLXI
RNS Number : 8737T
LXI REIT PLC
18 October 2017
18 October 2017
LXi REIT plc
(the "Company" or "LXi REIT")
GBP5.5 MILLION FORWARD FUNDED INVESTMENT IN A NEW FOOD STORE
DEVELOPMENT IN CHARD, SOMERSET, PRE-LET TO LIDL UK
The Board of LXi REIT plc (ticker: LXI) is pleased to announce
that it has exchanged contracts to provide forward funding for the
development of a new food store in Chard, Somerset, pre-let to Lidl
UK GmbH ("Lidl UK" and the "Property"). The development represents
an investment of GBP5.5 million, reflecting a net initial yield of
5.75% (net of acquisition costs to the Company).
The Property will comprise a 23,500 sq ft Lidl food store and
114 car parking spaces. Lidl UK, the tenant, is the principal UK
trading company of the Schwarz Gruppe GmbH, a top four global
retail group that owns and operates the Lidl and Kaufland brands,
operating over 10,000 stores across 26 countries. Lidl UK has now
overtaken Waitrose's UK market share. The Property will benefit
from a new 25-year lease from completion of the building works with
a tenant break right in year 15. The rent is subject to five yearly
upward only reviews index-linked to the Retail Prices Index.
The Property is well located on a prominent site in Chard,
Somerset, close to the Devon border and approximately 15 miles
south west of Yeovil. The site is well served by the national
motorway network and has a large catchment population within a
10-minute drive.
The pre-let agreement with Lidl has exchanged and the Company is
acquiring the land and forward funding on a fixed-price basis, with
completion of the purchase subject to receipt of planning consent.
The developer will pay the Company a licence fee during the
construction period. The Company is not developing the site or
assuming development risk.
The acquisition is being funded from equity resources following
the Company's second issue of shares on 12 October, with senior
debt finance expected to be introduced in the near term.
The Company is in solicitors' hands on additional acquisitions
which will absorb the balance of the Company's equity in short
order.
John White, Partner of LXi REIT Advisors Limited, commented:
"We are delighted to provide the forward funding for this new
discount food store. Lidl is a very strong tenant in the UK's
fast-growing discount food sector and the acquisition reflects an
attractive yield with a very low capital price of GBP230 per sq
ft."
The Company's LEI is: 2138008YZGXOKAXQVI45
FOR FURTHER INFORMATION, PLEASE CONTACT:
LXI REIT Advisors Limited Via Newgate Communications
John White (Partner, Fund
Manager)
Simon Lee (Partner, Fund Manager)
----------------------------------- ---------------------------------
Peel Hunt LLP Tel: 020 7418 8900
Luke Simpson
----------------------------------- ---------------------------------
Newgate Communications (PR Tel: 020 7680 6550
Adviser) Email: lxireit@newgatecomms.com
James Benjamin
Anna Geffert
Lydia Thompson
----------------------------------- ---------------------------------
NOTES:
The Company invests in UK commercial property assets let, or
pre-let, on very long (typically 20 to 30 years to expiry or first
break), inflation-linked leases to a wide range of strong tenant
covenants across a diverse range of property sectors.
The Company may invest in fixed-price forward funded
developments, provided they are pre-let to an acceptable tenant and
full planning permission is in place. The Company will not
undertake any direct development activity nor assume direct
development risk.
The Company is targeting a minimum annual dividend of 5 pence
per ordinary share, starting from the financial period commencing 1
April 2018, with the potential to grow the dividend in absolute
terms through upward-only inflation-protected long-term lease
agreements, and is targeting a net total shareholder return of 8
per cent. plus per annum over the medium term(1) .
The Company, a real estate investment trust ("REIT")
incorporated in England and Wales, is listed on the premium listing
segment of the Official List of the UK Listing Authority and was
admitted to trading on the main market for listed securities of the
London Stock Exchange in February 2017.
Further information on the Company is available at
www.lxireit.com
Note 1: these are targets only and not a profit forecast and
there can be no assurance that they will be met.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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