Wealth & Finance International - February 2017

5 February 2017 LXI REIT Plc: Successful Fundraising of £138.15 Million LXI REIT plc is pleased to announce that it has successfully raised gross proceeds of £138.15 million pursuant to the first placing, offer for subscription and intermediaries offer (the “Issue”) of ordinary shares of £0.01 each (the “Ordinary Shares”) as described in the prospectus published by the Company on 6 February 2017 (the “Prospectus”). The net proceeds of the Issue are expected to be approximately £135.4 million. Applications have been received under the Issue for 138,150,000 Or- dinary Shares which will be issued at a price of 100 pence per Ordi- nary Share. Of these, 87,355,712 Ordinary Shares were issued under the placing, 25,995,538 Ordinary Shares were issued under the offer for subscription and 24,798,750 Ordinary Shares were issued under the intermediaries offer. All applications were met in full. The Company intends to become a real estate investment trust (“REIT”) and invest in UK commercial property assets let, or pre-let, on very long (typically 20 to 30 years to expiry or first break), inflation-linked leases to a wide range of strong tenant covenants and will look to invest across a diverse range of target sectors. LXI REIT may invest in fixed-price forward funded developments, provided they are pre-let to an acceptable tenant and full planning permission is in place. LXI REIT will not undertake any direct development activity nor assume direct development risk. LXI REIT is targeting a minimum annual dividend of 5 pence per ordinary share, starting from the financial period commencing 1 April 2018, with the potential to grow the dividend in absolute terms through upward-on- ly inflation-protected long-term lease agreements, and is targeting a net total shareholder return of 8% plus per annum over the medium term.1 LXI REIT is managed by LJ Capital Limited and advised by LXI REIT Ad- visors (the “Investment Advisor”), whose principals have built a success- ful track record in this sector as part of Osprey Equity Partners Limited (“Osprey” or “Osprey Equity Partners”) and LJ Partnership. The Invest- ment Advisor, on behalf of LXI REIT, has already identified a substantial pipeline which should allow initial capital to be substantially invested or committed within six months following admission. Applications have been made for admission of the Ordinary Shares to the premium segment of the Official List of the UK Listing Authority and to trading on the premium segment of the London Stock Exchange plc’s main market for listed securities. Admission is expected to occur at 8.00 a.m. on 27 February 2017. Commenting on the announcement, Stephen Hubbard, Chairman of LXI REIT plc, said: “We are pleased with the strong response from a broad range of investors to our initial public offering. The proceeds of the Issue will enable the Company to complete on its substantial investment pipe- line of diversified UK property assets that benefit from very long-term (typically, 20 to 30 years) index-linked leases let or pre-let to institutional grade tenants. We expect to be fully deployed within six months providing our new shareholders with the potential of a highly attractive inflation-pro- tected dividend as well as capital growth.” Simon Lee, of LXI REIT Advisors Limited, commented: “The success of the Issue is a strong endorsement of our team’s track record and expe- rience, placing us in an ideal position to deliver on our attractive invest- ment pipeline. We welcome our new shareholders and look forward to working with them and seeking to deliver on our investment strategy.” Peel Hunt LLP is acting as sole sponsor, broker, placing agent and inter- mediaries offer adviser to the Company.