LXI REIT agrees to dispose of BCA facility in Corby

Real estate investment trust LXI agreed to dispose of its BCA facility in Corby on Thursday for £68.0m.

LXI said the sale price represented an 11% premium to the asset's latest book value of £61.0m and had also generated "an attractive" geared 14% annual internal rate of return.

The FTSE 250-listed group's sale followed a proactive re-gear of the BCA lease in July, which increased the remaining term from 16 to 25 years, and reflected its view that the asset's value had been maximised.

LXI highlighted that the company was under offer and in solicitors' hands on a range of pre-let forward funding and built asset acquisitions which will see it fully deploy the proceeds of the BCA sale across a number of long-let, index-linked assets secured to strong tenant covenants in robust sectors at a materially higher entry yield.

Completion of the sale will take place on 30 November.

As of 0935 GMT, LXI shares were up 1.78% at 115.21p.