LXI REIT acquires funds new acquisitions from recent capital raise

Real estate investment trust LXI REIT said on Thursday that it had made three new forward funding acquisitions, all of which were funded by its recent £250.0m equity capital raise.

LXI REIT acquired a 45,000 square foot Tesco food store and a 22,000 square foot Home Bargains site in Houghton le Spring, as well as a convenience store in Horncastle leased to the Co-Operative Food Group, for a total of £26.0m - reflecting an accretive 5% net initial yield versus the current portfolio valuation yield of 4.5%.

The FTSE 250-listed outfit stated the assets were secured to strong tenant covenants on long-term, index-linked, and fixed uplift leases and were also underpinned by affordable rents with strong ESG credentials.

For each of the forward funding acquisitions, full planning consent was in place, the agreements for leases were exchanged and the properties were being funded on a fixed price basis.

The company has now deployed £170.0m since its capital raise.