London-listed Long income REIT, LXi, has inked a further five acquisitions worth £57 mln (€68 mln), funded by its recent £250 mln equity capital raise.
The acquisitions, which have been transacted on an off-market basis, reflect an accretive 5.25% net initial yield, versus the current portfolio valuation yield of 4.5%. The assets are secured to strong tenant covenants on long-term, index-linked leases and are underpinned by affordable rents.
The company has acquired via a pre-let, forward-funding deal a 77,000 ft2 (7,150 m2) office in Dundee which is leased to BT Group on a new, unbroken 17.5 year lease with five yearly inflation linked uplifts.
The property, which will house BT’s critical infrastructure to handle emergency 999 telephone calls, will be built to a BREEAM Excellent standard, with an EPC target rating of A, and the development will include rooftop solar and EV charging points.
The company has also acquired five customer service, car storage and repair and maintenance facilities in Chertsey, Northampton, Newcastle, Carlisle and Cardiff, by means of a sale and leaseback with online car retailer Cazoo.
Each property is fully let to Cazoo Limited on a new, unbroken 20-year lease with five yearly CPI linked rental uplifts.
The company has now deployed £144 mln since the capital raise which closed on 9 February. The company is in solicitors’ hands on a range of additional assets and further announcements are expected to be made shortly.
