- Real estate investment trust LXi REIT said it had exchanged contracts on the forward funding acquisition of a garden centre in Reading for £19 million.

The acquisition price reflected an accretive 5.3% net initial yield.

The property, pre-let to Dobbies, the UK's largest garden centre operator and an existing tenant of the company, on a new 35-year lease, with no break right, and benefits from CPI plus 1% pa rental uplifts, reviewed on an annual basis, with a collar of 1.5% pa and a cap of 4% pa.

Construction works are scheduled to complete in spring 2022 and the company will earn an income during the construction period.

The company also said it had sold a small, ancillary retail parade acquired last year as part of the Co-op foodstore portfolio purchase.

The sale proceeds were £575,000 and represented a 100% premium to the purchase price paid by the company.

LXI also completed the extension of the occupational lease terms on six Greene King pubs from 13 years to expiry to 20 years to expiry, without break, in return for a 10% reduction in the passing rent.

The re-geared Assets rent represented 43% of the total rent of the company's pub assets.

Story provided by