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.


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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.

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