LXI REIT PLC Forward Funding Investment at Biggin Hill Airport (9683T)
20 November 2019 - 6:00PM
UK Regulatory
TIDMLXI
RNS Number : 9683T
LXI REIT PLC
20 November 2019
20 November 2019
LXi REIT plc
(the "Company" or "LXi REIT")
FORWARD FUNDING INVESTMENT AT LONDON BIGGIN HILL AIRPORT PRE-LET
FOR 35 YEARS TO A LEADING INTERNATIONAL AEROSPACE GROUP
The Board of Directors of LXi REIT (ticker: LXI), the specialist
inflation-protected long income REIT, is pleased to announce that
the Company has acquired, by way of a pre-let forward funding, a
new maintenance, repair and overhaul facility for business jets to
be constructed at London Biggin Hill Airport (the "Property").
The Property has been fully pre-let to a leading international
aerospace group on an unbroken 35-year lease from completion of the
building works, with annual rental uplifts fixed at a growth rate
of 2.5% per annum compounded.
The Property, which will comprise 232,000 sq ft of hangar,
workshop and office space purpose-built to a high specification,
along with 650,000 sq ft of apron area and surrounds, will be
situated immediately adjacent to the airport runway.
London Biggin Hill Airport is located in South East London, just
12 miles from the capital's centre. The airport provides quick and
convenient access to London, with a number of major high value
businesses engaged in aviation and technology positioned onsite as
well as nearby.
The Property will represent a key operating asset for the tenant
group, being one of only three such large scale facilities to be
operated by the tenant across the globe.
The Company is not developing the Property or assuming
development risk and is forward funding the project on a fixed
price basis. The Company will receive an income from the developer
during the construction period.
The project is being funded by the Company's revolving credit
facility.
Commenting on today's announcement, Simon Lee, partner of LXI
REIT Advisors Limited, said:
"We are delighted to be acquiring at an attractive yield, on an
off-market and forward funding basis, this key operating asset in
South East London, pre-let to a strong global tenant covenant on an
unbroken 35-year lease. The Property will provide the Company with
long-term secure income, attractive levels of contracted annual
rental growth and significant capital growth potential."
FOR FURTHER INFORMATION, PLEASE CONTACT:
LXI REIT Advisors Limited Via Maitland/AMO
Simon Lee
John White
Peel Hunt LLP Tel: 020 7418 8900
Luke Simpson / Liz Yong (Corporate
Broking)
----------------------------------------
Maitland/AMO (Communications Adviser) Tel: 020 7379 5151
James Benjamin Email: lxireit-maitland@maitland.co.uk
----------------------------------------
The Company's LEI is: 2138008YZGXOKAXQVI45
NOTES:
LXi REIT plc invests in UK commercial property assets let, or
pre-let, on very long (typically 20 to 30 years to first break),
inflation-linked leases to a wide range of strong tenant covenants
across a diverse range of robust property sectors.
The Company may invest in fixed-price forward funded
developments, provided they are pre-let to an acceptable tenant and
full planning permission is in place. The Company will not
undertake any direct development activity nor assume direct
development risk.
The Company is targeting an annual dividend of 5.75 pence per
ordinary share, starting from the financial period commencing 1
April 2019, with the potential to grow the dividend in absolute
terms through upward-only inflation-protected long-term lease
agreements, and is targeting a total NAV return of a minimum of 8
per cent. per annum over the medium term.*
The Company, a real estate investment trust ("REIT")
incorporated in England and Wales, is listed on the premium listing
segment of the Official List of the Financial Conduct Authority and
was admitted to trading on the main market for listed securities of
the London Stock Exchange in February 2017. The Company is a
constituent of the FTSE EPRA/NAREIT and MSCI indices.
Further information on the Company is available at
www.lxireit.com
* These are targets only and not a profit forecast and there can
be no assurance that they will be met.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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