Real estate investment firm snaps up £55m worth of national property acquisitions

Real estate investment company LXi REIT has acquired several long-let, index-linked acquisitions for a total of around £55m.

The acquisitions are said to be funded by the company’s new revolving credit facility, revealed this summer on July 22. LXi will receive an income from the developers during the construction periods.

It is not developing the following investments, however is forward funding each property on a fixed price basis.

LXi has firstly acquired a new Aldi-led scheme in Berwick-upon-Tweed. The foodstore has been pre-let to Aldi Stores Limited on a new 20-year lease from completion of the building works, with five yearly rental uplifts.

The real estate investment company has also acquired a new 75-bedroom Travelodge hotel in Sandwich, Kent. The hotel has been pre-let on a new 25-year lease from completion of the building works to Travelodge Hotels Limited.

Speaking about the acquisitions, Simon Lee, LXI REIT Advisors Limited partner, said: “We are pleased to be acquiring, predominantly on a forward funding basis, these attractively-priced assets let on long leases to strong tenant covenants across robust sectors, which are expected to provide secure income and capital growth potential.

“The attractive entry yields provide a substantial spread to both the company’s latest portfolio valuation yield and the low cost of our new revolving credit facility which is funding these acquisitions.”

Meanwhile, LXi has also acquired two Premier Inn hotels. The first is a new 70-bedroom Premier Inn hotel in Saffron Walden, Essex, while the second is a new 82-bedroom hotel in Worksop, Nottinghamshire.

Finally, the company has acquired a modern, purpose-built 178,617 sq ft industrial warehouse in Newton Aycliffe, Durham. The property is fully let to Gestamp Tallent Limited.

The property is located on Aycliffe Industrial Estate, which is in close proximity to the A1 motorway and forms part of Aycliffe Business Park, the largest in County Durham with over 250 businesses.