LXI Reit is seeking to raise £125m to fund further investments, the FTSE 250 firm said on Tuesday.
The specialist long-income real estate investment trust, which debuted on the London market in 2017, said it would raise the funds via a subsequent placing, open offer, offer for subscription and intermediaries offer.
A total of 88.3m new ordinary shares will be issued at 142p per share, which represents a 2.9% premium to the estimated net asset value per ordinary share as at 31 December 2021.
LXI Reit said it had identified a “significant” pipeline of additional assets which met its investment objectives and policies and would use funds to finance the acquisitions of these assets, subject to due diligence and ongoing sale negotiations.
Chairman Stephen Hubbard said: “This proposed subsequent issue will provide the capital to enable the company to capitalise in short order on its £272m near-term pipeline of accretive assets. This pipeline will further enhance and diversify the company’s portfolio of properties, and is available at an average net initial yield of approximately 5.2%.
“The assets are diversified across a range of defensive and structurally attractive sub-sectors and let to institutional-grade tenants.
“We expect the group’s portfolio to continue to deliver attractive, defensive, inflation-protected income returns and capital growth to our shareholders going forward.”
LXI Reit’s current investments are spread across commercial real estate, from food stores and industrial buildings to budget hotels, garden centres and healthcare.
As at 1115 GMT, shares in LXI Reit were down 4% at 146.56p.
