London real estate investment trust raises £250m following “exceptionally strong demand”

Following “exceptionally strong demand” from investors, London based real estate investment trust LXi REIT has announced its decision to double its current capital raise to £250m.

The board, as announced on February 9, taking into account the level of support received from investors and the depth of the investment advisor’s pipeline of nearer term investment opportunities, which has grown to a level now in excess of £350m, determined to increase the size of the subsequent issue to £250m (from £125m).

Accordingly, the company will issue a total of 176,056,338 ordinary shares (“New Ordinary Shares”) at the issue price of 142 pence per New Ordinary Share, raising gross proceeds of £250m.

Stephen Hubbard, chairman of LXi REIT plc, said: “We have seen exceptionally strong investor demand for our issue, and together with the strength of our nearer term pipeline of over £350m of accretive investment opportunities and the Investment Advisor’s track record of rapid deployment, we chose to double the size of our capital raise to £250m.

“The company’s strategy continues to be implemented successfully and we expect our secure, long-let index-linked portfolio to continue to perform strongly, benefiting from further growth, diversification and outperformance from predominantly off-market investments and forward funding opportunities, and to deliver further attractive inflation-protected income returns and capital growth for our shareholders.”

Simon Lee, co-manager of LXi REIT PLC, added: “We are very pleased with the result of this oversubscribed capital raise, especially given the tougher market conditions, and we would like to thank our existing investors for their continuing support and to welcome a wide range of new shareholders to the Company.

“We look forward to deploying the proceeds of the raise swiftly and prudently into our accretive near-term pipeline of long-let, inflation-linked assets diversified across a range of defensive and structurally supported sub-sectors and leased to strong tenant covenants, all of which we expect will create further sustainable value for our shareholders.”

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