LXi REIT revises its UK car park portfolio

LXi REIT revises its UK car park portfolio

LXi REIT has sold a bus storage facility in Yardley Wood, near Birmingham, let to National Express Group PLC on a long lease, to a specialist REIT for €7.5m (£6.8m):

·     reflecting a low exit yield of 4.2%, which compares favourably to the acquisition yield of 5.7% paid by the Company;

·     representing a 34% uplift on the purchase price and a 13% premium to latest book value (as at 30 September 2019); and

·     generating an attractive geared IRR for the Company of 36% per annum.


The Company retains its other bus storage facility in West Bromwich let to National Express Group PLC, which it acquired at the same time and on the same lease and pricing terms as Yardley Wood.


LXi REIT has also acquired, on a sale and leaseback basis, a 679-space car park in Croydon. The property has been leased back to Q-Park Limited, with a guarantee from its parent Q-Park N.V., on a new, unbroken, 35-year lease, with annual rent reviews linked to the Retail Prices Index. Q-Park is one of Europe's leading parking providers, with more than 475,000 parking spaces across over 2,500 car parks in seven Western European countries. The property benefits from multiple demand drivers including residential, office and leisure users and the rent has been set at a low level to provide strong rent cover.


John White, Partner of LXi REIT Advisors Limited, commented: "We are pleased to have completed the disposal of the Yardley Wood property at a significant premium to acquisition cost and book value, enabling us to recycle the proceeds into the accretive acquisition of a well-located car park secured to a substantial tenant covenant on a 35 year, RPI-linked lease, at a low capital cost."

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