Profitable £31M sale of St Albans Retail Park

LXi REIT

08/06/2023 12:42

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230608:nRSH1417Ca&default-theme=true

RNS Number : 1417C  LXI REIT PLC  08 June 2023

 

 

 

8 June 2023

 

LXi REIT plc

(the "Company" or "LXi")

PROFITABLE DISPOSAL

The Board of LXi REIT plc (ticker: LXI), the specialist inflation-protected
very long income REIT, is pleased to announce that the Company has sold a
retail park in St Albans ("the Property") to a UK institution for £31
million, equating to a net initial yield of 4.7%.

 

The Property is let to B&Q (62% of rent), Aldi (28% of rent) and Costa
(10% of rent) and has a weighted average unexpired lease term of 18 years.

 

The Company acquired the Property through a forward funded purchase for £24
million in 2019.  The sale price is in line with the 31 March 2023 book
value, having been held for sale, and generates an attractive 11% IRR.

 

The net sale proceeds are anticipated to be used to reduce leverage and,
potentially, to be invested in the Company's higher yielding pipeline.

 

 

FOR FURTHER INFORMATION, PLEASE CONTACT:

 LXI REIT Advisors Limited                     Via H/Advisors Maitland

 Simon Lee (Partner, Fund Manager)

 John White (Partner, Fund Manager)

 Freddie Brooks (CFO)

 Barclays                                      020 7623 2323

 Bronson Albery / Tom Macdonald/Dion Miceli

 Jefferies International                       020 7029 8000

 Tom Yeadon / Ed Matthews / Rishi Bhuchar

 H/Advisors Maitland (Communications Advisor)  07747 113 930 / 020 7379 5151

 James Benjamin / Rachel Cohen                 lxireit-maitland@h-advisors.global

 

The Company's LEI is: 2138008YZGXOKAXQVI45

 

NOTES

LXI REIT plc invests in commercial property assets predominantly in the UK,
let, or pre-let, on 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 dividend of 6.6 pence per ordinary share for the
year which commenced on 1 April 2023*.

 

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 Financial Conduct 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, MSCI and STOXX
Europe 600 indices.

 

Further information on the Company is available at www.lxireit.com
(http://www.lxireit.com)

*     This is a target and not profit forecast.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DISFZGGVMRNGFZM