Property investor in double deal for £73m
Property investor LXi REIT has invested £73m in two sites within the West Midlands.
The real estate fund which is focused on long term income has purchased a 73,000 sq ft supermarket in Halesowen, Birmingham. The site is fully let to Asda on a long lease with 22 years left before the first break and includes five yearly rental uplifts at a fixed rate of 3% per annum compounded.
The store was built in 2008 and is said to trade strongly with the site including 600 parking spaces.
Alongside the Birmingham supermarket the real estate investor also acquired a Compass training and conference facility in Stone Staffordshire. The 127,000 sq ft facility sits within 18.5 acre site and follows LXi’s previous acquistion of Compass Milton Keynes earlier this month.
The property is fully let to FTSE100 company Compass Group Holdings on a lease with 17 years left to the first break, with rents currently set to a low £12 per square ft with annual reviews and a fixed uplift of 2.5%.
LXi noted that this site was “underpinned by a strong residual and alternative use value” including potential residential use.
The purchase of both sites was funded by LXi’s £250m equity capital raise, which closed on 9 February 2022, with all of the proceeds now fully deployed.
