LONDON (dpa-AFX) - LXi REIT (LXI.L), on Thursday, announced the acquisition of a long-let property, which has been independently valued by Knight Frank LLP at £58.9 million.
The consideration for the acquisition is being satisfied by the issue of 35,715,862 new ordinary shares in the company, equating to 88% of the Independent Value, at an issue price of 145 pence per share; and a further £7.0 million in cash, equating to 12% of the Independent Value.
The company noted that the consideration represents a net initial yield of 4.9% and is expected to rise to 5.7% at the next inflation-linked rent review in 2025.
The Property comprises 127,000 sq ft of built area, along with 850 car parking spaces and petrol filling station, on a substantial freehold site that extends to 16 acres. The Property is fully let to Sainsbury's Supermarkets Ltd. with 19 years unexpired to first break. The rent increases five yearly in line with RPI inflation, collared at 1% pa and capped at 4% pa.
Simon Lee, Fund Manager, LXI REIT Advisers said, 'We are pleased to acquire this well-let asset underpinned by a long, inflation-linked lease to a FTSE 100 company, with good asset management opportunities to enhance income and capital returns. The consideration predominantly takes the form of the issue of new shares in the Company at a material premium to NAV, which further enhances the accretive nature of the transaction.'
Copyright RTT News/dpa-AFX
© 2021 AFX News