Result of Equity Issue
12 October 2017
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, IN OR TO THE UNITED STATES, AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH AFRICA, JAPAN OR ANY MEMBER STATE OF THE EEA (OTHER THAN THE UNITED KINGDOM) OR ANY OTHER JURISDICTION IN WHICH THE PUBLICATION, DISTRIBUTION OR RELEASE OF THIS ANNOUNCEMENT WOULD BE UNLAWFUL. PLEASE SEE THE SECTION ENTITLED "DISCLAIMER" TOWARDS THE END OF THIS ANNOUNCEMENT.
This announcement does not constitute, and may not be construed as, an offer to sell or an invitation to purchase, investments of any description, or a recommendation regarding the issue or the provision of investment advice by any party. No information set out in this announcement is intended to form the basis of any contract of sale, investment decision or any decision to purchase shares in the Company.
LXI REIT plc
(the "Company" or "LXI REIT")
Issue of Equity
Further to its announcement on 21 September 2017, the Board of Directors (the "Directors") of LXI REIT plc (ticker: LXI) is pleased to announce that it has successfully raised gross proceeds of £60.2 million pursuant to the issue of new ordinary shares of £0.01 each (the "Ordinary Shares") in the Company (the "Second Issue") under the placing programme set out in the Prospectus published by the Company in February 2017.
Applications have been received under the Second Issue for 58,731,707 Ordinary Shares which will be issued at a price of 102.5 pence per Ordinary Share.
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 16 October 2017.
Following the Second Issue, the Company's issued share capital will comprise 196,881,707 Ordinary Shares and this is the total number of Ordinary Shares with voting rights in the Company. This figure (196,881,707) may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to, their interest in the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.
Commenting on today's announcement, Stephen Hubbard, Chairman of LXI REIT plc, said:
"We are delighted to announce a successful capital raise of £60.2 million that will enable the Company, through its Investment Advisor, to pursue our strong immediate pipeline of index-linked, very long let real estate assets that will further diversify the Company's tenant, sector and geographic exposures.
We are grateful for the continued support from our existing shareholders and welcome a number of new investors to the Company. This capital raise takes the Company's market cap to £200 million since IPO in February this year. We will now focus on deploying in short order the proceeds of the fundraising into our immediate pipeline of attractive investments to be acquired from a number of vendors and developers and let to a wide range of strong tenant covenants."
Peel Hunt LLP is acting as sole bookrunner to the Company.
The Company's LEI is: 2138008YZGXOKAXQVI45
FOR FURTHER INFORMATION PLEASE CONTACT:
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LXI REIT Advisors Limited John White Simon Lee Jamie Beale |
Via Newgate Communications |
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Peel Hunt LLP (Sole Bookrunner) Luke Simpson (Corporate Broking) Mark Thompson (Sales) |
Tel: 020 7418 8900 |
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Newgate Communications (PR Adviser) James Benjamin Anna Geffert Lydia Thompson |
Tel: 020 7680 6550 Email: lxireit@newgatecomms.com |
NOTES:
The Company invests 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 across a diverse range of property sectors.
The Company may invest in fixed-price forward funded developments, provided they are pre-let to an acceptable tenant and full planning permission is in place. The Company will not undertake any direct development activity nor assume direct development risk.
The Company 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-only inflation-protected long-term lease agreements, and is targeting a net total shareholder return of 8 per cent. plus per annum over the medium term (these are targets only and not a profit forecast and there can be no assurance that they will be met).
The Company, a real estate investment trust (REIT) incorporated in England and Wales, is listed on the premium listing segment of the Official List of the UK Listing Authority and was admitted to trading on the main market for listed securities of the London Stock Exchange in February 2017.
Further information on the Company is available at www.lxireit.com
Disclaimer
This announcement does not constitute, and may not be construed as, an offer to sell or an invitation to purchase investments of any description or a recommendation regarding the issue or the provision of investment advice by any party. No information set out in this announcement is intended to form the basis of any contract of sale, investment decision or any decision to purchase shares in the Company.
Peel Hunt, which is authorised and regulated by the Financial Conduct Authority, is acting for the Company only in connection with the matters described in this announcement and is not acting for or advising any other person, or treating any other person as its client, in relation thereto and will not be responsible for providing the regulatory protection afforded to clients of Peel Hunt or advice to any other person in relation to the matters contained herein.
The shares of the Company have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") or under the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold into or within the United States absent registration, except pursuant to an applicable exemption from, or in a transaction that is not subject to, the registration requirements of the Securities Act and in compliance with the securities laws of any relevant state or other jurisdiction of the United States. Moreover, the shares of the Company have not been, nor will they be, registered under the applicable securities laws of Australia, Canada, the Republic of South Africa, Japan or any member state of the EEA (other than the United Kingdom). Further, the Company is not, and will not be, registered under the US Investment Company Act of 1940, as amended. The shares of the Company will be offered outside of the United States pursuant to the provisions of Regulation S of the Securities Act. Subject to certain exceptions, the shares of the Company may not be offered or sold in the United States, Australia, Canada, the Republic of South Africa, Japan or any member state of the EEA (other than the United Kingdom or to professional investors in certain EEA member states for which marketing passports have been obtained) or to, or for the account or benefit of, any national, resident or citizen of the United States, Australia, Canada, the Republic of South Africa, Japan or any member state of the EEA (other than the United Kingdom or to professional investors in certain EEA member states for which marketing passports have been obtained). The Second Issue and any subsequent placing under the Company's placing programme, and the distribution of this announcement, in other jurisdictions may be restricted by law and the persons into whose possession this announcement comes should inform themselves about, and observe, any such restrictions.
The value of shares and the income from them is not guaranteed and can fall as well as rise due to stock market and currency movements. When you sell your investment you may get back less than you originally invested. Figures refer to past performance and past performance is not a reliable indicator of future results. Returns may increase or decrease as a result of currency fluctuations.
None of the Company, the Investment Advisor, LJ Capital Limited (the "AIFM") or Peel Hunt, or any of their respective affiliates, accepts any responsibility or liability whatsoever for, or makes any representation or warranty, express or implied, as to this announcement, including the truth, accuracy or completeness of the information in this announcement (or whether any information has been omitted from the announcement) or any other information relating to the Company or associated companies, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available or for any loss howsoever arising from any use of the announcement or its contents or otherwise arising in connection therewith. The Company, the Investment Advisor, the AIFM and Peel Hunt, and their respective affiliates, accordingly disclaim all and any liability whether arising in tort, contract or otherwise which they might otherwise have in respect of this announcement or its contents or otherwise arising in connection therewith.
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