FTSE 250 firm LXi Reit has invested in a number of supermarket sites
(Picture: PA)Property investor LXi Reit has gone on a £85 million shopping spree, buying a number of supermarket sites following a recent capital raise.
The FTSE 250 firm, which owns real estate with long term rental income in various sectors such as warehouses, hotels and student digs, said it has agreed seven acquisitions in the grocery sector.
The supermarket industry is one where many businesses have seen sales leap during the pandemic, and sites have been able to stay open during lockdowns. That is in contrast to a number of retailers that have had to temporarily close shops, making it much harder for some of them to pay rents to landlords.
Lxi said it has bought existing sites as well as agreed to forward-fund new developments. Deals include funding a 20,000 square feet store in East Ham that has been pre-let to Lidl, and purchasing a building in Bexley let to Tesco.
The combined deals total £85 million, and represent approximately 70% of the proceeds of a capital raise done earlier this month.
Lxi Reit added that it has a number of other assets in solicitors’ hands which would fully deploy the balance of the proceeds of the capital raise and further announcements are expected to be made shortly on acquisitions.
Simon Lee, partner at LXi, said: “We continue to believe that right-sized, well positioned grocery real estate assets let on sustainable rents to financially robust tenants, who are benefitting from flexible and proven operating models, and offering us as landlords very long, index linked, lease terms, remain attractive investments.”
Following the latest deals, foodstores will be the firm’s largest sector exposure, representing approximately 25% of its property portfolio by value. LXi tends to buy smaller grocery sites rather than large supermarket sites.
