(Alliance News) - LXI REIT PLC on Friday said it has sold a multi-let site in Essex, England and also exchanged contracts to buy a Marks & Spencer Group PLC food store in Scotland.
The London-based real estate investment trust focused on UK commercial property said it received an unsolicited approach from a UK pension fund to sell a property in Saffron Walden in Essex for GBP19.3 million.
The site is currently let to retailers B&M European Value Retail SA and Pets At Home Group PLC, as well as hotel company Premier Inn, coffee chain Costa and gym provider Pure Gym.
The site was initially purchased by LXI REIT for GBP15.8 million. The sale delivers "an attractive" internal rate of return of 19% per year.
In addition, LXI has purchased an M&S food store as well as a trade unit let to a builders' merchant. The sites are located in Largs, North Ayrshire in Scotland.
The site has been pre-let to M&S on a new, unbroken 15-year lease, including five annual rental uplifts at a fixed compound yearly rate of 2.5%.
The trade unit is fully let to independent builders' merchant MKM Building Supplies on a 20-year lease.
Rent at the unit rises on a five-yearly basis, and in line with the retail price index, capped at 3.5% per year.
LXI shares were 0.1% lower at 150.40 pence each in London on Friday morning.
By Eric Cunha; ericcunha@alliancenews.com
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B&M (BME)
Pets at home (PETS)
Marks & Spencer (MKS)