The UK supermarket group Sainsbury’s is in discussions with LXi REIT to sell 18 stores for approximately £500m (€572 mln) under a sale and leaseback agreement.
In turn, LXi REIT has announced that it is discussing with investors regarding a possible share issue to part-fund the deal although there is no guarantee the transaction or the associated share issue will transpire.
News of the transaction comes three months after LXi REIT told PropertyEU in an interview that it was eyeing bigger forward funding and sale and leaseback transactions. Subscribers can read the interview here.
If the LXi transaction goes ahead, proceeds from the sale would part-fund Sainsbury’s acquisition of 21 stores held in the UK Highbury and Dragon investment vehicles, which the group said it wanted to purchase last year. Sainsbury’s already owns around 49% and the remaining 51% is owned by Supermarket Income REIT and British Airways Pension Trustees Limited.
