(Alliance News) -Â LXI REIT PLC on Tuesday said it has made three disposals, worth a combined GBP17 million, and also two acquisitions in the foodstore sector for a total of GBP15 million.
The first disposal is a Glasgow office, being a long-let property in Cambuslang occupied by the local council, which has been sold to a specialist REIT for GBP8 million. The disposal price reflects a premium of 17% to the purchase price, LXI noted.
The second is the sale of 11 long-let social housing assets for a combined sum of GBP8.5 million, representing a 14% premium to purchase price and a 2% premium to the latest book value. Finally, LXI has sold has sold a non-operational plot adjacent to its Travelodge hotel in Llanelli to a petrol filling station operator for GBP500,000.
Turning to the purchases, LXI has exchanged contracts on the pre-let forward funding acquisition of a Lidl foodstore in West Bridgford, Nottinghamshire.
It has also bought, from an administrator, a foodstore in Lytham St Annes, Lancashire, which was purpose built for Aldi in 2014 and has a "strong" trading history.
"This capital recycling reflects the company's continuing, but selective, expansion into the foodstore sector, with a particular focus on right-sized stores acquired off-market at attractive yields and let or pre-let to strong tenants on low, sustainable rents. The sales have crystallised attractive returns on assets from which we have extracted maximum value," said Simon Lee, co-manager of LXI.
Shares in LXI were up 1.3% at 107.60 pence in London on Tuesday.
By Lucy Heming;Â lucyheming@alliancenews.com
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