LXI REIT PLC acquired five Travelodge hotels and an industrial facility in the U.K. for a total of £62.4 million, excluding costs.
The U.K.-based commercial real estate investment trust bought the Travelodge portfolio, totaling 387 rooms in Aberdeen, Brighton, Liverpool, Llanelli and Nuneaton, for £45.2 million, marking a net initial yield of 5.8%.
The industrial facility in Newbury, Berkshire, was purchased for £17.2 million, at a 5.5% net initial yield. The 101,377-square-foot asset, which is fully leased to Snell Advanced Media Ltd., offers office, warehouse and production space, and parking facilities.
Additionally, the company signed a 15-year, fixed-rate £75 million term loan facility agreement with Scottish Widows Ltd. and Lloyds Bank Commercial Banking. The new loan, with a margin of 1.55% per year, will gear proceeds from the REIT's recent £175 million equity raise.
LXI REIT added in a release that it completed two projects in the U.K. that it had forward funded at a net initial yield of 6.15%. The company delivered a fully pre-leased property in Bradford, which will be anchored by discount supermarket chain Aldi, and a fully pre-leased Travelodge-anchored project in Camborne.
