The Board of LXi REIT plc (ticker: LXI), the specialist inflation-protected very long income REIT, is pleased to announce that the Company has sold a retail park in St Albans (“the Property”) to a UK institution for £31 million, equating to a net initial yield of 4.7%. 

The Property is let to B&Q (62% of rent), Aldi (28% of rent) and Costa (10% of rent) and has a weighted average unexpired lease term of 18 years.

The Company acquired the Property through a forward funded purchase for £24 million in 2019.  The sale price is in line with the 31 March 2023 book value, having been held for sale, and generates an attractive 11% IRR.

The net sale proceeds are anticipated to be used to reduce leverage and, potentially, to be invested in the Company’s higher yielding pipeline.