LXi REIT plc has acquired six properties, with a combined total consideration of €71.6m (£62.4m). This takes the company to full deployment of its recent €200.8m (£175m) equity raise announced on 12 October 2018. The assets are highly accretive to the company's existing portfolio yield and rent review profile.
LXi REIT has purchased five Travelodge budget hotels for a combined total consideration of €51.9m (£45.2m), reflecting a 5.8% net initial yield. Each property is fully let to Travelodge Hotels Limited with a WAULT to first break of 24 years. The properties trade well with strong occupancy levels and are well-located to city centre amenities and/or strong communications links, with good geographic diversification. The portfolio includes hotels in Aberdeen (97 bedrooms), Brighton (94 bedrooms), Liverpool (105 bedrooms), Llanelli (51 bedrooms), and Nuneaton (40 bedrooms).
The company has also acquired an industrial facility in Newbury, Berkshire for €19.7m (£17.2m), reflecting a 5.5% net initial yield, rising to approximately 6.0% at the next five-yearly rent review, which is due in two years. The property is fully let to Snell Advanced Media Limited, and guaranteed by its parent Belden Inc. It comprises a headquarters facility, operating as a mix of office, production and warehouse space totalling 101,377ft², with extensive parking. The asset is situated on a well-configured site of 6.3 acres, providing a low site density of approximately 37%. The tenant has been headquartered at the site for over 30 years and has recently invested significantly into the building. The comples is located in a prominent position on Turnpike Road, close to Newbury town centre and Newbury Business Park, Newbury's principal office park.
John White, Partner of LXi REIT Advisors Limited, commented: "We are pleased to have acquired these property assets which are further accretive to the company's existing portfolio yield and rent review profile. The company has now carefully and in short order deployed all of the €200.8m (£175m) of equity raised on 12 October 2018 into investments, with attractive net initial yields and long, index-linked leases, that are highly diversified across a wide range of robust sectors and strong tenants."
