LXI REIT has announced a second share issue after putting a £100m of assets under offer.
The REIT launched in February, raising £138m against a target of £200m. It said it has now deployed all of the net proceeds, along with a £55m Scottish Widows loan facility.
The new raise could include up to 200m shares, raising more than £200m for a pipeline of acquisitions.
LXI said that it had entered a period of exclusivity “on an immediate pipeline of additional properties which currently exceed £100m in value. The company is building a further substantial pipeline of attractive potential investment opportunities.”
The REIT invests in long-leased, UK-focused assets, across a range of sectors.
The second issue will be a placing to qualified investors, with shares priced at 102.5p, a 1.7% discount to the closing price of 104.3p.
Net initial yield in the current portfolio is 5.9%, with a 24-year weighted average unexpired lease term. Assets are diversified across eight different sectors: 30% in hotels, 23% in supported living, 13% in care homes, 11% in industrial, 10% in car parks, 5% in discount retail, 5% in restaurants and coffee shops and 3% in automotive.
The REIT said the new pipeline included a wide range of index-linked assets that will diversify tenant, sector and geographic exposures. It has an average net initial yield of 6%.
Investment adviser to the REIT, LXI REIT Advisors, was established by the principals behind Osprey Equity Partners, part of the LJ Partnership which has $6.5bn (£4.8bn) of real estate assets under management.
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