LXi REIT has added a Sainsbury’s supermarket in Middlesbrough to its portfolio in a £58.9m deal.
The 127,000 sq ft store, and its 16-acre freehold site, is fully let to Sainsbury’s with 19 years until its first break.
LXi bought the property from one of its shareholders, Laxmi Nivaria, paying 88% of the value in new shares and a further £7m in cash.
The deal represents a net initial yield of 4.9%, but an inflation-linked rent review in 2025 will push that to 5.7%.
Argos, part of the Sainsbury’s group, has space on the site, while the Food Warehouse, B&M, KFC and Costa have sublet space from Sainsbury’s.
LXi said the site has good opportunities for asset management as well as ESG initiatives.
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