London Stock Exchange welcomes LXI REIT plc to the Main Market
LXI REIT plc will invest in UK commercial property assets let, or pre-let, on very long (typically 20 to 30 years to expiry or first break), inflation-linked leases to a wide range of strong tenant covenants and will look to invest across a diverse range of target sectors. The Company has raised £138.15m in its IPO and the listing of its ordinary shares on the Main Market. The Company intends to become a real estate investment trust (REIT).
The investment objective of the Company is to deliver inflation-protected income and capital growth over the medium-term for shareholders through investing in a diversified portfolio of UK property that benefits from long-term index-linked leases with institutional-grade tenants. The Company will target a wide range of sectors, including, but not limited to, office, retail, leisure, industrial, distribution and alternatives – including hotels, serviced apartments, affordable housing and student accommodation. It will also focus on growth sub-sector areas such as discount retailers, budget hotel operators and "last mile" distribution units fuelled by online retail.
LXI REIT is managed by LJ Capital Limited and the Investment Advisor is LXI REIT Advisors, whose principals have built a successful track record in this sector as part of Osprey Equity Partners Limited and LJ Partnership. The Investment Advisor, on behalf of LXI REIT, has already identified a substantial pipeline which should allow initial capital to be substantially invested or committed within six months following admission.
Peel Hunt LLP acted as sole sponsor, placing agent and intermediaries offer adviser. Stephenson Harwood LLP provided legal advice to the Company.
Commenting, Chairman of LXI REIT plc, Stephen Hubbard, said:
"We are pleased with the strong response from a broad range of investors to our initial public offering. The proceeds of the Issue will enable the Company to complete on its substantial investment pipeline of diversified UK property assets that benefit from very long-term (typically, 20 to 30 years) index-linked leases let or pre-let to institutional grade tenants. We expect to be fully deployed within six months providing our new shareholders with the potential of a highly attractive inflation-protected dividend as well as capital growth."
Simon Lee, of LXI REIT Advisors Limited, commented:
"The success of the Issue is a strong endorsement of our team's track record and experience, placing us in an ideal position to deliver on our attractive investment pipeline. We welcome our new shareholders and look forward to working with them and seeking to deliver on our investment strategy."