LXI REIT PLC GBP68M Disposal of BCA asset 11% ahead of book value (3035E)
November 05 2020 - 1:00AM
UK Regulatory
TIDMLXI
RNS Number : 3035E
LXI REIT PLC
05 November 2020
5 November 2020
LXi REIT plc
(the "Company" or the "Group")
GBP68 MILLION DISPOSAL OF BCA FACILITY 11% AHEAD OF LATEST BOOK
VALUE
The Board of LXi REIT plc (ticker: LXI), th e specialist
inflation-protected very long income REIT, is pleased to report
that it has exchanged contracts unconditionally for the sale of the
Group's BCA facility in Corby for GBP68 million, reflecting a low
exit yield of 4.45%, to a UK pension fund. Completion will occur on
30 November 2020.
The sale price represents an 11% premium to the latest book
value of GBP61 million (31 March 2020) and generates an attractive
geared 14% pa IRR.
The sale follows the Company's proactive re-gear of the BCA
lease in July 2020 - which increased the remaining term from 16
years to 25 years, at no cost to the Company - and reflects the
Company's view that the asset's value has been maximised.
The Company is under offer and in solicitors' hands on a range
of pre-let forward funding and built asset acquisitions which will
fully deploy in short order the proceeds of the BCA sale across a
number of long-let, index-linked assets secured to strong tenant
covenants in robust sectors at a materially higher entry yield.
Further details will be provided shortly.
FOR FURTHER INFORMATION, PLEASE CONTACT:
LXI REIT Advisors Limited Via Maitland/AMO
Simon Lee (Partner, Fund Manager)
John White (Partner, Fund Manager)
Peel Hunt LLP Tel: 020 7418 8900
Luke Simpson/Liz Yong
----------------------------------------
J efferies International Tel: 020 7029 8000
Ed Matthews/Tom Yeadon
----------------------------------------
Maitland/AMO (Communications Adviser) Tel: 020 7379 5151
James Benjamin Email: lxireit-maitland@maitland.co.uk
----------------------------------------
The Company's LEI is: 2138008YZGXOKAXQVI45
NOTES:
LXI REIT plc 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 robust 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 quarterly dividend of 1.35 pence per
ordinary share for the quarter that commenced on 1 July 2020* and a
quarterly dividend of 1.44 pence per ordinary share for the quarter
that commenced on 1 October 2020.*
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.
The Company is a constituent of the FTSE 250, EPRA/NAREIT and
MSCI indices.
Further information on the Company is available at
www.lxireit.com
* These are guidance levels or targets only and not a profit
forecast and there can be no assurance that they will be met.
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