(Alliance News) - LXi REIT PLC on Tuesday announced both the sale of a bus storage facility and the purchase of a car park.
LXi has, following an "unsolicited" approach, sold a bus storage site in Yardley Wood, near Birmingham, for a GBP6.8 million. The site is let on a long-term deal to National Express Group PLC.
LXi said the sale reflects an exit yield of 4.2%, comparing "favourably" to its acquisition yield of 5.7%. The sale price is 34% higher than what LXi bought it for.
The closed-ended real estate investor has also bought, on a sale and leaseback basis, a 679-space car park in Croydon. The property has been leased back to seller Q-Park Ltd for 35 years.
Q-Park, LXi said, is one of Europe's leading car park providers, with over 2,500 car parks in seven western European countries. No financial details were given for the purchase.
John White, a partner at LXi REIT Advisors Ltd, commented: "We are pleased to have completed the disposal of the Yardley Wood property at a significant premium to acquisition cost and book value, enabling us to recycle the proceeds into the accretive acquisition of a well-located car park secured to a substantial tenant covenant on a 35 year, retail price index-linked lease, at a low capital cost."
LXi shares were 0.6% higher on Tuesday morning in London at a price of 137.40 pence each.
By George Collard; georgecollard@alliancenews.com
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