LXI.L Share News (LXI)

(Sharecast News) - Property investor LXi REIT said it had acquired a portfolio of 23 nursery schools in England for £34m.
The purchase price reflected an accretive 5.5% net initial yield, against a current portfolio value of 4.7%.

Bought from and leased back to KidsFoundation, the nurseries provide education and care services for children.

"The Nurseries are well located across England, with strong and affluent catchment populations and the rent has been set at a sustainable level to produce a high rent cover of 2.75X (EBITDAR of 2.75 times the rent) on an individual asset basis," the company said on Wednesday.

"This ensures the rent remains affordable for the tenant whilst the investment is also underpinned by vacant possession value."

The deal used the balance of the equity proceeds of the company's £100m placing in July.