LXi REIT buys in Bradford

Published:  05 May, 2017

£10m forward funding for new discount retail park

LXi REIT has exchanged contracts to provide forward funding for the development of a new discount retail park on a prominent 6.4-acre site in Bradford, Yorkshire, pre-let to Aldi and Home Bargains. The investment reflects a blended net initial yield of 6.15 per cent.

Anchoring the scheme will be a new 20,000-sq ft food store, which has been pre-let to Aldi on a new 20-year lease, subject to five yearly upward only RPI inflation-linked rent reviews collared and capped at 1 per cent pa and 3 per cent pa compound.

In addition, a 16,000-sq ft unit has been pre-let to Home Bargains on a new 15 year lease, subject to five-yearly upward only open-market rent reviews. A further 5,000 sq ft unit has been pre-let to Heron Foods on a new 10-year lease subject to five yearly upward only open-market rent reviews. An additional 5,000-sq ft retail unit is still available on an index-linked lease.

LXi partner John White said: “Aldi and Home Bargains are very strong tenants and successful companies in the fast growing discount retail sector. The property will benefit from a strong residual value given the dense catchment population and low starting rents.”

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