LXI buys Carlisle retail for £4.3m
Reflecting a net initial yield of 6.0%, LXI REIT has bought a 33,500 sq ft discount store on Currock Road in Carlisle as part of a wider £109m investment.
The store is home to The Range, which has an unbroken 19.5-year unexpired lease on the property. The Range’s parent company CDS Superstores is paying a rent of £8/sq ft, and the lease as five-yearly rental uplifts of 2% per annum.
The Range operates around 140 discount stores across the UK.
The acquisition of the store is part of a wider £109m investment by LXI REIT, which announced a £175m capital raising earlier this month.
Other assets purchased in the investment include a logistics facility in Corby and a Jurys Inn Hotel in Plymouth, while LXI has also agreed deals to forward-fund a Lidl and a B&M in East Fife, along with a Travelodge in Edinburgh.
LXI added further deals were “in solicitors’ hands” which would see the remainder of the £175m spent in the coming weeks.
Simon Lee, partner of LXI REIT Advisors, said: “These are five high quality assets, diversified across a wide range of robust sub-sectors, leased to institutional grade tenants on very long term leases with inflation linked rents.”
