REIT acquires site for business jet facility at London-based airport

A specialist inflation-protected long income real estate investment trust has acquired a new site for the construction, maintenance, repair of business jets.

LXi REIT has acquired the facility at London Biggin Hill Airport, 12 miles from the centre of the capital, for an undisclosed sum by way of a pre-forward let funding.

Comprising 232,000 sq ft of hangar, workshop and office space as well as 650,000 sq ft of apron area and surrounds, the facility will be situated adjacent to the airport runway.

The facility has been fully pre-let to a leading international aerospace group on an unbroken 35-year lease from completion of the building works, with annual rental uplifts fixed at a growth rate of 2.5 per cent.

Simon Lee, partner of LXI REIT Advisors Limited, commented: “We are delighted to be acquiring at an attractive yield, on an off-market and forward funding basis, this key operating asset in South East London, pre-let to a strong global tenant covenant on an unbroken 35-year lease.

“The property will provide the company with long-term secure income, attractive levels of contracted annual rental growth and significant capital growth potential.”

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