LXi REIT scraps deal to buy Sainsbury's stores (updated)

LXi REIT

26/09/2022 08:09

(Adds details, background)
       Sept 26 (Reuters) - Property investor LXi REIT  LXIL.L 
said on Monday it is pulling out from a deal to buy Sainsbury's
 SBRY.L  stores in southern England after suspending an equity
funding, citing stock market volatility.
        LXi had last Wednesday said it was in talks with the
grocer to buy 18 supermarkets for 500 million pounds ($531.50
million) in a sale and leaseback deal, but the purchase was
conditional on the investor raising the necessary equity
funding. urn:newsml:reuters.com:*:nL8N30T0XJ
        Since then UK stocks have been gyrating on fears of an
impending recession and concerns over a huge increase in
borrowing due to Britain's new tax cuts and spending plans.
 urn:newsml:reuters.com:*:nL4N30U134  urn:newsml:reuters.com:*:nL4N30T1V9
  
        On Monday, the sterling tumbled nearly 5% to an all-time
low. urn:newsml:reuters.com:*:nL1N30X0A4
  
    Sainsbury's also separately confirmed it was no longer in
talks with LXi regarding the store sale, and said it will have
no impact on its financial guidance.
($1 = 0.9407 pounds)
 (Reporting by Sinchita Mitra in Bengaluru; Editing by Dhanya
Ann Thoppil)
 ((Sinchita.Mitra@thomsonreuters.com;))