LXI REIT PLC Acquisition (5691Z)
December 18 2017 - 1:00AM
UK Regulatory
TIDMLXI
RNS Number : 5691Z
LXI REIT PLC
18 December 2017
18 December 2017
LXi REIT plc
(the "Company" or "LXi REIT")
GBP1.4 MILLION ACQUISITION OF A LONG-LET SUPPORTED LIVING
PORTFOLIO, GREATER LONDON
The Board of LXi REIT plc (ticker: LXI) is pleased to announce
that the Company has acquired the freehold interest in a portfolio
of regulated long-let supported living properties located in
Greater London (the "Portfolio"). The purchase price for the
Portfolio is GBP1.4 million, reflecting a net initial yield of 6.0%
(net of acquisition costs to the Company).
Each property is immediately income producing and has been let
on a new 35-year lease, with no tenant break, to a specialist
Registered Provider of social housing. The Registered Provider is
regulated by the Homes and Communities Agency and receives its
funding for the rent payments directly from the relevant local
authority.
Each lease is subject to annual upward-only rent reviews
index-linked to the Consumer Prices Index and the Registered
Provider is responsible for the costs of repair, maintenance,
insurance and outgoings.
The properties in the Portfolio comprise specialist, high
quality supported living homes for individuals with physical and/or
mental disabilities or other care needs.
John White, Partner of LXi REIT Advisors Limited, commented:
"This supported living portfolio provides the Company with an
attractive 6.0% net initial yield underpinned by unbroken 35-year,
index-linked leases, with strong underlying residential
values."
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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