LXi REIT has completed a series of sales to offload office and residential assets, at the same time as adding to its supermarket portfolio.
The REIT has sold its sole office, a council office in Glasgow, for £8m, a 17% premium to purchase price. It has also disposed of an 11-asset social housing development for £8.5m – a 14% premium – and sold non-operational land next to its Travelodge hotel in Llanelli for £500,000.
On the acquisition side, the company has agreed the prelet forward funding of a Lidl supermarket in West Bridgford, Nottinghamshire, and has bought a supermarket in Lytham St Annes, let to Aldi, for a combined £15m.
Simon Lee, co-manager of LXi REIT, said: “This capital recycling reflects the company’s continuing, but selective, expansion into the foodstore sector, with a particular focus on right-sized stores acquired off-market at attractive yields and let or prelet to strong tenants on low, sustainable rents. The sales have crystallised attractive returns on assets from which we have extracted maximum value.”
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