LondonMetric completes merger with LXi, buys Crewe property

LondonMetric Property announced the completion of its merger with LXi REIT on Wednesday, effective on 5 March.

The FTSE 250 company said the merger saw 942,960,279 new LondonMetric shares admitted for trading, with Nick Leslau, formerly of LXi REIT, appointed as a non-executive director.

It said the merger established LondonMetric as the UK's leading triple net lease real estate investment trust (REIT), with an internally-managed structure and a robust balance sheet.

The firm’s real estate portfolio, focussed on the logistics, healthcare, convenience, entertainment, and leisure sectors, was now valued at £6.2bn.

In addition to the merger, LondonMetric said it had acquired a 213,000 square foot logistics development in Crewe for £13m, and sold £5.9m in non-core assets.

Since its half-year report in September, LondonMetric said it had agreed to 66 rent reviews and lettings, adding £3.3m to its annual rent revenue.

Chief executive officer Andrew Jones described the merger as a “transformational” deal.

“[It] will drive accelerated earnings and dividend progression.

“We will continue to reposition parts of the portfolio ... and are seeing interesting investment opportunities.”

LondonMetric said it would announce its full-year financial results for the year ending 31 March on 4 June.

At 1151 GMT, shares in LondonMetric Property were up 3.44% at 192.2p.

Reporting by Josh White for Sharecast.com.