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LXI REIT (LXI)     

skinny - 27 Feb 2017 08:31

lxi%20reit%20logo.png?crc=4243309816



Chart.aspx?Provider=EODIntra&Code=LMP&Si



LXi REIT plc is a new closed-ended fund established to deliver inflation-protected income and capital growth over the medium-term for shareholders through investing in a diversified portfolio of UK property, that benefits from very long-term (typically, 20 to 30 years to expiry or first break) index-linked leases with institutional grade tenants. LXi REIT will not undertake any direct development activity nor assume direct development risk.


Company Website

LXI Investor Relations

Recent Broker notes

BarChart Indicators

Recent RNS notices

LXI Reit Fundamentals (LXI)

skinny - 18 Jun 2018 17:09 - 30 of 45

Company Factsheet

skinny - 06 Aug 2018 14:11 - 31 of 45

INTERIM DIVIDEND AND UPDATE

Interim Dividend

The Board of LXi REIT plc (ticker: LXI), the specialist inflation-protected very long income REIT, is pleased to announce an interim quarterly dividend in respect of the period from 1 April 2018 to 30 June 2018 of 1.375 pence per ordinary share, payable on 28 September 2018 to shareholders on the register at 7 September 2018. The ex-dividend date will be 6 September 2018. The dividend reflects an annualised rate of 5.50 pence, in line with the Company's current annual dividend target.*

1.355 pence of this dividend will be paid as a Property Income Distribution ("PID") and 0.02 pence will be paid as an ordinary UK dividend ("non-PID"). PID dividends are paid out of tax-exempt property rental income. Dividends paid from licence fee income that the Company receives from developers during the construction period on forward funding projects are treated as non-PID dividends.

Shareholders entitled to elect to receive PID distributions without deduction for withholding tax should complete the declaration form which is available in the Investors section of the Company's website, www.lxireit.com and return to the Company's registrar, Link Asset Services, at The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU.

Update

The Company, having successfully deployed the £293 million of equity and debt capital raised since its IPO in February 2017, is contemplating an equity raise in 2018 to fund further investments in line with its investment policy and objectives and with a view to delivering further value for its shareholders. Any such raise is expected to follow the publication of an updated net asset value for the Company and a prospectus. A further announcement will follow in due course.

HARRYCAT - 06 Aug 2018 16:01 - 32 of 45

Possibly a haven for my JLIF money.

skinny - 17 Sep 2018 07:18 - 33 of 45

Quartely Factsheet

skinny - 24 Sep 2018 07:31 - 34 of 45

Issue of Equity

Proposed Initial Placing, Placing, Open Offer, Offer for Subscription and Intermediaries Offer and Notice of General Meeting

Further to its announcement on 6 August 2018, the Board of Directors (the "Board") of LXi REIT (ticker: LXI), the specialist inflation-protected long income REIT, today announces the proposed issue of further ordinary shares ("New Ordinary Shares") in the Company to raise gross proceeds of approximately £100 million (the "Issue"), the details of which will be set out in the Prospectus, expected to be published by the Company later today. The Issue will comprise of an Initial Placing, Placing, Open Offer, Offer for Subscription and Intermediaries Offer.

The Company was launched as a closed-ended investment company in February 2017. The Company has successfully deployed the £293 million of equity and debt capital raised both on and since its IPO in February 2017 and, consequently, on 6 August 2018, the Company announced that it has been considering a further equity raise to fund further investments in line with its investment policy to drive further value creation for its Shareholders.

Terms not otherwise defined in this announcement have the meanings that will be given to them in the Prospectus. This summary should be read in conjunction with the full text of the announcement and the Prospectus, when available.

Summary

· Issue of up to 44,457,159 New Ordinary Shares through an Initial Placing, targeting gross proceeds of approximately £50 million

· Issue of up to 44,457,159 New Ordinary Shares pursuant to a Placing, Open Offer, Intermediaries Offer and Offer for Subscription, targeting gross proceeds of approximately £50 million

· Qualifying Shareholders are being offered the opportunity to participate in the Open Offer on the basis of 7 New Ordinary Shares for every 31 Existing Ordinary Shares

· Qualifying Shareholders are also being offered the opportunity to subscribe for New Ordinary Shares in addition to their Open Offer Entitlement under the Excess Application Facility

· The Board have reserved the right to increase the size of the Issue by up to 66,518,847 New Ordinary Shares

· The Issue Price is 112.75 pence per New Ordinary Share. This represents a premium of 2.1 per cent. to the Net Asset Value per Ordinary Share as at 1 September 2018 (unaudited) of 113.2 pence per Ordinary Share, adjusted as detailed below

· The Issue Price represents a discount of 4.4 per cent. to the closing price per Ordinary Share on 21 September 2018 of 118 pence per Ordinary Share

· Conditional on Admission, a group of private, Spanish family offices linked to Mr Ram Bhavnani (the "Spanish Family Office Investors"), has committed to invest an aggregate of approximately £40 million pursuant to the Initial Placing and will be subject to lock-up restrictions for a period of two years from the date of Admission

· The Company will be subject to a 90 day lock-up on the issue of further Ordinary Shares from the date of Admission, subject to waiver by the Joint Bookrunners

· The Company is in advanced discussions with Scottish Widows Limited for a new 15 year term loan

· The Investment Advisor, on behalf of the Company, has identified a significant pipeline of additional assets which meet the Company's investment objective and investment policy, including off-market assets identified through the Investment Advisor's extensive contacts and relationships

· The pipeline assets, which total over £200 million in value, are diversified across a wide range of sub-sectors and are leased to institutional grade tenants on very long term leases with rents indexed upwards only in line with inflation. They benefit from a long weighted average unexpired lease term to first break of 23 years and a blended net initial yield of approximately 5.75 per cent. and are structured as both pre-let forward funding and standing investments

· The Company is currently targeting a dividend of 5.50 pence per Ordinary Share for the year ending March 20191

more.....

skinny - 04 Oct 2018 07:23 - 35 of 45

The Board of LXi REIT plc (ticker: LXI), the specialist inflation-protected very long income REIT, is pleased to announce an interim quarterly dividend in respect of the period from 1 July to 30 September 2018 of 1.375 pence per ordinary share, payable on 21 December 2018 to shareholders on the register at 12 October 2018. The ex-dividend date will be 11 October 2018. The dividend reflects an annualised rate of 5.50 pence, in line with the Company's current annual dividend target*.

skinny - 11 Oct 2018 12:22 - 36 of 45

Result of General Meeting

Further to its announcement on 24 September 2018, the board of directors of LXi REIT (ticker: LXI), the specialist inflation-protected long income REIT, is pleased to announce that both of the resolutions put forward at its General Meeting held earlier today were passed. The resolutions were in connection with the proposed issue of further ordinary shares ("New Ordinary Shares") in the Company, as detailed in the prospectus published by the Company on 24 September 2018 (the "Prospectus").

The text of all the resolutions can be found in the Notice of Meeting contained in the circular published by the Company on 24 September 2018.

more.....

skinny - 12 Oct 2018 07:17 - 37 of 45

Result of Issue

Further to its announcement on 24 September 2018, the Board of Directors (the "Board") of LXi REIT (ticker: LXI), the specialist inflation-protected long income REIT, is pleased to announce that it has successfully raised gross proceeds of £175 million pursuant to the issue of a total of 155,433,165 ordinary shares ("New Ordinary Shares") in the Company (the "Issue"), at an Issue Price of 112.75 pence per New Ordinary Share. The result of the Issue was well in excess of the target fundraising size and also oversubscribed at the maximum issue size.

The Issue of New Ordinary Shares will be split as follows:

• 91,438,880 New Ordinary Shares under the Initial Placing, raising gross proceeds of approximately £103.1 million;

• 26,734,137 New Ordinary Shares under the Open Offer (including the Excess Application Facility), raising gross proceeds of approximately £30.1 million;

• 17,723,022 New Ordinary Shares under the Placing, raising gross proceeds of approximately £20 million;

• 17,489,325 New Ordinary Shares under the Offer for Subscription, raising gross proceeds of approximately £19.7 million; and

• 2,047,801 New Ordinary Shares under the Intermediaries Offer, raising gross proceeds of approximately £2.3 million

All valid applications received under the Open Offer (including valid applications under the Excess Application Facility) will be met in full.

more.....

skinny - 24 Oct 2018 07:10 - 38 of 45

Acquisitions

FIVE ACQUISITIONS WITH A COMBINED PURCHASE PRICE OF £109 MILLION

Following the successful closing of its capital raise announced on 12 October, the Board of LXi REIT plc (ticker: LXI), the specialist inflation-protected very long income REIT, is pleased to announce the following five property acquisitions, from separate vendors/developers, with a combined total consideration of approximately £109 million (excluding costs).

The Company is in solicitors' hands on further acquisitions which will fully deploy the balance of the £175 million capital raised in the next few weeks. Further acquisition announcements will be made shortly.



Forward funding of Travelodge hotel, Edinburgh

The Company has exchanged contracts to provide forward funding for the pre-let development of a 70-bedroom Travelodge hotel at Edinburgh Park, Edinburgh. The development represents a total investment by the Company of £6.6 million, reflecting a 5.4% net initial yield (net of acquisition costs to the Company).

The property has been fully pre-let to Travelodge Hotels Limited, the principal trading company of the Travelodge hotel group, on an unbroken 25-year lease from completion of the building works, with five yearly rent reviews index-linked to the Consumer Prices Index (capped at 4% pa and collared at 1% pa compound).

Founded in 1985, Travelodge is one of the UK's leading hotel brands, operating over 550 hotels and over 41,000 rooms in the UK, Spain and Ireland.

The well-located property is within the South Gyle Business District, which is two miles south east of Edinburgh International Airport and five miles west of Edinburgh city centre. The immediate area is one of the UK's premier business locations housing a wide range of corporate occupiers, including Aegon, BT, Diageo, JP Morgan, Scottish & Newcastle and Tesco Bank.

Planning consent has been granted, the agreement for lease has exchanged and the Company is forward funding the project on a fixed price basis. The Company will receive an income from the developer during the construction period. The Company is not developing the site or assuming development risk. The building works are due to complete in Q3 2019.

Forward funding of Lidl foodstore and B&M, East Fife

The Company has exchanged contracts to provide forward funding for the pre-let development of a 19,310 sq ft Lidl foodstore and 20,000 sq ft B&M discount store to be built at Cowdenbeath, East Fife, for £8.5 million, reflecting a 6.0% net initial yield (net of acquisition costs to the Company).

The Lidl property has been fully pre-let to Lidl UK GmbH, the principal UK trading company of the Schwarz Gruppe GmbH (a top four global retail group that owns and operates the Lidl and Kaufland brands, operating over 10,000 stores across 26 countries), on a 25-year lease from completion of the building works (with a tenant break right at year 15), with five yearly rent reviews index-linked to the Consumer Prices Index (capped at 3% pa and collared at 1% pa compound).

The B&M property has been fully pre-let to B&M Retail Limited, the principal trading company of B&M European Value Retail SA, on an unbroken 15-year lease from completion of the building works, with five yearly upward only open market rent reviews.

B&M European Value Retail SA, a London Stock Exchange listed company with a market capitalisation of £3.9 billion, is the UK's leading general merchandise value retailer, operating over 580 stores.

The property is well located in Cowdenbeath, a town in west Fife, approximately five miles north-east of Dunfermline and 18 miles north of Edinburgh, with a catchment population of 265,189.

Planning consent has been granted, the agreements for lease have exchanged and the Company is forward funding the project on a fixed price basis. The Company will receive an income from the developer during the construction period. The Company is not developing the site or assuming development risk. The building works are due to complete in Q3 2019.

Jurys Inn hotel, Plymouth

The Company has completed the acquisition of a 247-bedroom Jurys Inn hotel in Plymouth for £30 million, reflecting a 5.7% net initial yield (net of acquisition costs to the Company).

The property is fully let to Jurys Hotel Management (UK) Limited, the principal trading company of the Jurys Inn group, with an unbroken 24-year unexpired lease term, with five yearly rent reviews index-linked to the uncapped Retail Prices Index.

The hotel, which was purpose-built in 2007 and fully refurbished in 2016, trades very well and includes a bar, restaurant and 11 conference and meeting rooms. It is well-located on Exeter Street, near Plymouth's Historic Quarter and other tourist attractions such as the National Marine Aquarium and the Royal William Yard, and a short walk to the city centre and train station.

The hotel is one of the largest in Devon and draws significant custom from (i) leisure tourism, with many overseas visitors, including bus tours, using the hotel as a base from which to explore Devon and Cornwall; (ii) businesses linked to the maritime docks; and (iii) a strong relationship with the university.

The Jurys Inn portfolio comprises 36 hotels and 8,013 rooms in strategic locations in economically-strong and attractive destinations and transport hubs across the UK and Ireland. The group was acquired in December 2017 by Fattal Group, an Israeli hotel group operating 160 hotels in 17 countries, for £800 million.

BCA logistics facility, Corby

The Company has completed the acquisition of a 121-acre car storage facility in Corby, Northamptonshire, for £60 million, reflecting a 5.25% net initial yield (net of acquisition costs to the Company), rising to over 6.0% at the next five yearly rent review in three years' time.

The property is fully let to BCA Group Europe Limited, part of BCA Marketplace plc, with an unbroken 18-year unexpired lease term, with five yearly rent reviews index-linked to the uncapped Retail Prices Index.

BCA Marketplace plc, a London Stock Exchange listed company with a market capitalisation of £1.7 billion, is Europe's leading used vehicle distributor and remarketing company, operating 50 branches in 13 countries and selling over one million vehicles per annum. BCA's brands include "WeBuyAnyCar.com".

The property comprises a substantial and strategic logistics holding with a capacity for over 18,000 cars and from which BCA operate a number of long term contracts, including for BMW Finance and Vauxhall's primary vehicle storage/resale centres. It is rail terminal connected and has excellent connections to the M1 southbound, the M6 and A1(M) via the A14 dual carriageway.

Corby is an established and strategic distribution location in the heart of the East Midlands, which attracts major distribution operators given its access to 80% of the UK population within a 4.5-hour HGV drive time and a number of major occupiers include Matalan, Morrisons, Staples and Wincanton.

The property adjoins the Midlands Logistics Park, a new logistics park to the south of Corby, which has recently attracted new developments including an 845,000 sq ft regional distribution facility for Eddie Stobart and a 950,000 sq ft national distribution centre for Bosch-Siemens group.

The purchase price, equating to a low £495,000 per acre, is significantly underpinned by vacant possession value.

The Range, Carlisle

The Company has completed the acquisition of a 33,500 sq ft discount store in Carlisle for £4.3 million, reflecting a 6.0% net initial yield (net of acquisition costs to the Company).

The property is fully let to CDS Superstores (International) Limited, trading as The Range, with an unbroken 19.5-year unexpired lease term, with fixed five yearly rental uplifts of 2% pa. The rent reflects a very low £8 per sq ft.

The Range is one of the fastest growing discounters in the UK, operating 140 discount stores and stocks some 65,000 products across its home, leisure and garden departments. The property is located approximately one mile south of Carlisle city centre in a successful trading location, with nearby operators including Asda, B&M and Iceland.

Simon Lee, Partner of LXi REIT Advisors Limited, commented:

"We are pleased to be investing just over £109 million from our £175 million capital raising announced on 12 October. These are five high quality assets, diversified across a wide range of robust sub-sectors, leased to institutional grade tenants on very long term leases with inflation linked rents.

The Company is in solicitors' hands on a range of further accretive acquisitions that meet our selective investment strategy and will deliver further value to our investors. These acquisitions will result in the full deployment of the recent capital raise in the next few weeks."

skinny - 13 Nov 2018 07:24 - 39 of 45

Six Acquisitions, New Debt & Fully Deployed

SIX ACQUISITIONS WITH A COMBINED PURCHASE PRICE OF £62.4 MILLION

UPDATE OF FULL EQUITY DEPLOYMENT, NEW LOAN FACILITY & CONSTRUCTION WORKS

The Board of LXi REIT plc (ticker: LXI), the specialist inflation-protected very long income REIT, is pleased to announce six further property acquisitions (the "Acquisitions"), with a combined total consideration of £62.4 million (excluding costs). This takes the Company to full deployment of its recent £175 million equity raise announced on 12 October 2018.

The Acquisitions are highly accretive to the Company's existing portfolio yield and rent review profile.

· Of the combined passing rents of the Acquisitions, 100% are RPI-linked.

· The weighted average unexpired lease term ("WAULT") to first break of the Acquisitions is 22.1 years.

· The weighted average net initial acquisition yield of the Acquisitions is 5.7%.

The Company is also in solicitors' hands and under offer on further accretive acquisitions, comprising pre-let forward fundings, to deploy its new debt facility, on which further details are set out below.

Five Travelodge hotels

The Company has acquired five Travelodge budget hotels for a combined total consideration of £45.2 million, reflecting a 5.8% net initial yield (net of acquisition costs to the Company).

Each property is fully let to Travelodge Hotels Limited, the principal trading company of the Travelodge hotel group, with a WAULT to first break of 24 years. Each benefit from five yearly rent reviews index-linked to the uncapped Retail Prices Index.

Founded in 1985, Travelodge is one of the UK's leading hotel brands, operating over 550 hotels and over 41,000 rooms in the UK, Spain and Ireland.

The properties trade well with strong occupancy levels and are well-located to city centre amenities and/or strong communications links, with good geographic diversification:

· Aberdeen: 97 bedrooms

· Brighton: 94 bedrooms

· Liverpool: 105 bedrooms

· Llanelli: 51 bedrooms

· Nuneaton: 40 bedrooms

more.....

skinny - 26 Nov 2018 14:40 - 40 of 45

Half year results this Thursday, 29 November 2018.

skinny - 29 Nov 2018 07:09 - 41 of 45

Interim results

· Total net asset value ("NAV") return per share (inclusive of dividends) for the six month period was 8.08%. This represents significant over delivery on the Company's annual target of 8%1

· EPRA NAV per share increased in the six month period by 5.33 pence or 4.95% to 113.00 pence at 30 September 2018

· Dividend per share ("DPS") declared for the six month period of 2.75 pence putting the Company on track to meet its full year target of 5.50 pence1

· DPS fully covered by EPRA earnings per share ("EPS") of 2.80 pence for the half-year which excludes developer licence fees and Adjusted EPS of 3.17 pence including developer licence fees2

· Operating profit of £18.39 million comprising income from the Group's property portfolio and changes in fair value of investment property net of administrative and other expenses

· Portfolio independently valued by Knight Frank LLP at £318.79 million as at 30 September 2018 including all commitments on forward funded assets, representing a like for like uplift of 12% from acquisition price (excluding acquisition costs)3

· Loan to value reducing from 31 March 2018 to 29% with material headroom to our medium term maximum of 35%

· Low all-in fixed cost of debt of 2.90% and long average debt maturity of 11 years underpinning our ability to grow investor returns through inflation-linked rent reviews

· Total shareholder return since IPO in February 2017 of 21% reflecting the strong performance of the Company's portfolio, increased dividend targets, dividend payments and share price

more.....

skinny - 17 Dec 2018 07:52 - 42 of 45

Quarterly Factsheet

skinny - 07 Jan 2019 07:12 - 43 of 45

PROFITABLE DISPOSALS, ACCRETIVE ACQUISITIONS AND CONFIRMATION OF 15-YEAR FIXED LOAN RATE

The Board of LXi REIT plc (ticker: LXI), the specialist inflation-protected very long income REIT, is pleased to announce the following profitable disposals and accretive acquisitions.

Travelodge hotels disposals

Following receipt of an unsolicited approach, the Company has sold two of its older Travelodge hotels, in Haverhill and Ipswich, to an institutional buyer for £12.6 million in aggregate:

· reflecting a low exit yield of 5.0%, which compares favourably to the acquisition yields of 5.92% and 6.12% paid by the Company in March and July 2017, respectively;

· representing a 19% uplift on acquisition cost and a 5% premium to the latest book value as at 30 September 2018; and

· generating an attractive geared IRR for the Company of 23% per annum.

Two industrial acquisitions, West Midlands

The Company has acquired two industrial properties, by way of purchase and leaseback, for a combined purchase price of £11.7 million, reflecting a 5.7% net initial yield (net of acquisition costs to the Company).

The properties have been acquired with new, unbroken 25-year leases in place to West Midlands Travel Ltd, with a guarantee from its parent, National Express Group PLC, a FTSE 250 listed leading transport provider delivering services in the UK, Continental Europe, North Africa, North America and the Middle East, with a market capitalisation of approximately £1.9 billion.

The new leases benefit from annual Retail Price Index linked rent reviews (collared at 2% per annum and capped at 4% per annum compound).

The properties comprise two purpose-built bus depots totalling 93,000 sq ft and 102,000 sq ft, with a range of accommodation including parking halls, workshops, vehicle inspection pits, refuelling areas, stores, bus wash areas and associated offices.

The properties are both well located in the West Midlands: (i) in the southern Birmingham suburb of Yardley Wood, which lies 6.6 miles to the south of Birmingham city centre; and (ii) in West Bromwich, which lies 6.4 miles to the north west of Birmingham city centre.

The properties are being acquired at a low capital cost and low rental base and benefit from strong alternative use values.

Forward funding acquisition of Aldi-anchored scheme, Evesham

The Company has exchanged contracts to provide forward funding for the pre-let development of an Aldi foodstore-anchored property in Evesham, Worcestershire for £12.15 million, reflecting a 5.4% net initial yield (net of acquisition costs to the Company).

Anchoring the scheme will be a new 18,578 sq ft foodstore, which has been pre-let to Aldi Stores Limited, the principal UK trading company of the Aldi group, a leading global discount food retailer with 10,000 stores across 18 countries. The property will benefit from a new 15-year lease (with no tenant break right), with five yearly upward only RPI inflation-linked rent reviews.

The second unit, comprising 12,935 sq ft, has been pre-let to T. J. Morris Limited (trading as Home Bargains), a leading discount retailer of both food and non-food products, with over 400 stores throughout the UK. This has been pre-let on a new 15-year lease (with no tenant break right), with five yearly upward only open market rent reviews.

The final unit, comprising 10,000 sq ft, has been pre-let to TJX UK Limited (trading as TK Maxx), a leading discount fashion retailer and the principal UK trading company of The TJX Companies Inc., a New York Stock Exchange listed leading off-price apparel and home fashions retailer in the U.S. and worldwide with a market capitalisation of $54 billion. This unit has been pre-let on a new 15-year lease (with a tenant break right in year 10), with five yearly upward only open-market rent reviews.

The property, which benefits from 196 parking spaces on a 3.9 acre site, lies one mile south of Evesham town centre and close to the main A46 bypass, providing good access to the national motorway system. Evesham is an affluent town situated in the heart of Worcestershire, approximately 14 miles south west of Stratford-upon-Avon, 16 miles north east of Cheltenham and 17 miles south east of Worcester.

Planning consent has been granted, the agreements for lease have exchanged and the Company is forward funding the property on a fixed price basis. The Company will receive an income from the developer during the construction period. The Company is not developing the site or assuming development risk. The building works are due to complete in July 2019.

Scottish Widows loan - 2.99% per annum all-in fixed rate over 15-year term

Following the Company's announcement on 13 November 2018, reporting terms having been agreed for a new 15-year £75 million term loan with Scottish Widows Limited (the "New Loan") to gear the proceeds of its recent equity issue, the Company is pleased to report that it has now completed the New Loan and has fixed the all-in rate at 2.99% per annum until maturity of the facility in December 2033.

The New Loan takes the Company's:

· weighted average all-in debt cost to 2.94% per annum across all facilities;

· weighted average debt maturity to over 12 years across all facilities; and

· loan-to-value ratio to 30%, when fully drawn (below the Company's maximum level of aggregate borrowings of 35% of the Company's gross assets).

The Company is in solicitors' hands on a wide range of further accretive acquisitions which will fully deploy the New Loan in short order.

Simon Lee, Partner of LXi REIT Advisers Limited, commented:

"We are pleased to have completed the disposal of two Travelodge hotels at a significant premium to acquisition cost and book value and to have immediately recycled the proceeds into two accretive industrial properties let to a strong tenant on 25 year, RPI-linked leases.

Our new 15-year loan facility with Scottish Widows locks in a very attractive 2.99% all-in funding cost over the long term, reflecting the high quality and secure nature of our property portfolio. We continue to deploy the facility across a range of quality assets underpinned by long term leases, defensive sectors and robust tenants with accretive yields."

skinny - 28 Jan 2019 07:26 - 44 of 45

ACCRETIVE ACQUISITIONS AND PROFITABLE DISPOSALS

skinny - 13 Feb 2019 07:16 - 45 of 45

PRE-LET FORWARD FUNDING INVESTMENTS

The Board of LXi REIT plc (ticker: LXI), the specialist inflation-protected very long income REIT, is pleased to announce that the Company has exchanged contracts to provide forward funding for the pre-let development of a portfolio of 13 separate Starbucks and Costa drive-thru format coffee shops for a combined consideration of £23.4 million, reflecting a 5.7% net initial yield (net of acquisition costs to the Company).

The acquisitions are being funded utilising the Company's new Scottish Widows loan.

12 of the properties have been pre-let to Starbucks Coffee Company (UK) Limited and one has been pre-let to Costa Limited, each on unbroken leases of 15 years from completion of the building works, with five yearly rent reviews index-linked to RPI inflation (collared at 1% per annum and capped at 4% per annum compound).

Starbucks Coffee Company (UK) Limited is the principal UK trading company of the Starbucks Corporation, the leading coffee retailer which operates over 29,000 stores globally and is listed on the NASDAQ stock exchange with a market capitalisation of $87 billion.

Costa Limited is the principal UK trading company of the Costa Coffee group, the UK's largest and the world's second largest coffee shop chain with over 2,000 UK outlets and more than 1,240 in 31 overseas markets. The group was acquired by The Coca-Cola Company in January 2019 for £3.9 billion.

Each property will comprise a new drive-thru format coffee shop and the sites are well located across Great Britain in Barry, Blackpool, Cambourne, Canvey Island, Cardiff, Carmarthen, Newcastle Under Lyme, Northampton, Nottingham, Peterborough, Preston, Redditch and Stoke.

The Company is not developing the sites or assuming development risk and is forward funding each property on a fixed price basis. The building works are due to complete in Q3 2019. The Company will receive an income from the developer during the construction period.

more.....
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