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LXi REIT Acquires Accretive £34 Mln Nursery Schools In England

LXi REIT plc (LXI.L), a specialist inflation-protected long income REIT, announced Wednesday the off-market sale and leaseback acquisition of a portfolio of 23 nursery schools in England for a total cost of 34 million pounds.

The acquisition reflects an accretive 5.5% net initial yield, versus a current portfolio value of 4.7%.

The company noted that the nurseries have been acquired from and leased back to KidsFoundation, a European provider of education and care services for children.

Each property benefits from a new, unbroken 30-year lease to the top entity within the KidsFoundation group. The rent increases on an annual basis in line with RPI inflation until 2030.

The transaction reflects the tenant's ambition to further grow and invest in its UK business, with a continued drive to provide the highest quality early childhood education and care.

This acquisition represents LXi REIT's first transaction in the nursery school sector, the attractions of which include:

The acquisition deploys the balance of the equity proceeds of the Company's 100 million pounds placing in July this year.

John White, Partner, LXI REIT Advisors, said, "The portfolio provides LXI with highly secure, inflation-linked and diversified 30-year cashflows, supported by sustainable rents and strong residual values."

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