Share Prices & Company Research

Market News

01 Sep 2021 | 07:42

LXI REIT buys 29 UK nurseries for £34m

(Sharecast News) - Property investor LXi REIT said it had acquired a portfolio of 23 nursery schools in England for £34m. The purchase price reflected an accretive 5.5% net initial yield, against a current portfolio value of 4.7%.

Bought from and leased back to KidsFoundation, the nurseries provide education and care services for children.

"The Nurseries are well located across England, with strong and affluent catchment populations and the rent has been set at a sustainable level to produce a high rent cover of 2.75X (EBITDAR of 2.75 times the rent) on an individual asset basis," the company said on Wednesday.

"This ensures the rent remains affordable for the tenant whilst the investment is also underpinned by vacant possession value."

The deal used the balance of the equity proceeds of the company's £100m placing in July.

Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 7th October 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.