LXi REIT intends to deliver inflation-protected income and capital growth over the medium-term for shareholders through investing in a diversified portfolio of UK property, that benefits from long-term index-linked leases with institutional-grade tenants. LXi REIT will only invest in assets with leases containing regular, upward-only rental reviews and will neither 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 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 term1.
LXi REIT’s Investment Advisor is LXi REIT Advisors Limited, which is owned by the principals, shareholders and directors of Osprey Equity Partners Limited.
Annual fees paid to the Investment Advisor are highly competitive: annual fee of 0.75% based on market capitalisation (0.65% above £500 million); no performance fee.
LXi REIT’s investment objective is to deliver inflation-protected income and capital growth over the medium-term for shareholders through investing in a diversified portfolio of UK property, that benefits from long-term index-linked leases with institutional-grade tenants.
Investment Policy (Summary)
LXi REIT will target inflation-protected income and capital returns through acquiring a diversified portfolio of UK property assets, let or pre-let to a broad range of tenants with strong covenants on very long and index-linked leases.
LXi REIT will seek to acquire high quality properties that meet the following key investment considerations:
LXi REIT will target a wide range of sectors, including office, retail, leisure, industrial, distribution and alternatives – including hotels, serviced apartments, affordable housing and student accommodation. It will also focus on growth sub-sector areas such as discount retailers, budget hotel operators and “last mile” distribution units fuelled by online retail.
LXi REIT will seek to only acquire assets let or pre-let to tenants with strong financial covenants and on long leases (typically 20 to 30 years to expiry or first break), with index-linked or fixed rental uplifts, in order to provide security of income and low cost of debt. LXi REIT will only invest in assets with leases containing regular upward-only rental reviews. These reviews will typically link the growth in rents to an inflation index such as, RPI, RPIX or CPI or alternatively may have a fixed annual growth rate.
LXi REIT will not undertake any direct development activity nor assume direct development risk. However, 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. In such circumstances, LXi REIT will seek to negotiate the receipt of immediate income from the asset, such that the developer is paying LXi REIT a return on its investment during the construction phase and prior to the tenant commencing rental payments under the terms of the lease.
Where LXi REIT invests in forward funded developments:
The Directors intend to conduct the affairs of LXi REIT so as to enable it to qualify as a REIT for the purposes of Part 12 of the CTA 2010 (and the regulations made thereunder).
LXi REIT’s full investment policy is included in its Prospectus, which can be found in the Documents section of this website.
LXi REIT has appointed LJ Administration (UK) Limited as LXi REIT’s alternative investment fund manager (the “AIFM”). LXi REIT and the AIFM have appointed LXi REIT Advisors Limited (the “Investment Advisor”) to provide certain services in relation to LXi REIT and its portfolio, including sourcing and advising on investments for acquisition by LXi REIT and due diligence in relation to proposed investments.
The Investment Advisor is owned by the principals, shareholders and directors of Osprey Equity Partners Limited ("Osprey"). Osprey was formed in 2011 and is 50 per cent. owned by LJ Partnership. LJ Partnership was established in 2009 and has grown to become a substantial, international multi-family office and asset manager, managing US$14 billion of assets, including US$6.5 billion of real estate assets, for families, private individuals and institutions. It has over 250 employees and offices in Europe, the US and Asia.
Osprey has extensive expertise in the purchase and forward funding of commercial property assets let or pre-let on long, index-linked leases to institutional quality tenants across a wide range of sectors. Its current tenants include Premier Inn, Travelodge, Aldi, M&S Simply Food, Sainsbury’s, Tesco, B&M, Home Bargains, Costa Coffee, McDonald’s and Holland and Barrett.
Osprey has executed 21 transactions in the last four years with a gross asset value of c. £700 million for family office and private client investors. The vast majority of these assets are let or pre-let to strong tenants on very long term, index-linked leases. Osprey has realised an average annual return of 20% per annum for its exited investments and an average dividend of 6.5% per annum.
The key individuals responsible for executing LXi REIT’s investment strategy are:
Alex de Meyer
Elliot is a director of LXi REIT Advisors, also representing LJ Partnership, of which he is the CFO. Elliot has 15 years’ experience in finance with positions held in both practice and industry.
Having graduated from university with BA (Hons) in Economics, Elliot spent the first eight years of his career in practice as an accounts and audit manager, before taking a director position (2003-2009) in charge of finance in a real estate business.
This led to a similar position within a blue-chip global company (Cushman & Wakefield) following acquisition, before leaving to help found LJ Partnership.
In addition, Elliot also held a financial position (2005-2007), managing the financial statements and forecasting of Salamanca Capital Investments, a privately owned group of investment management and advisory companies.
Jonathan is a Partner of LJ Partnership. He is responsible for overseeing LJ Partnership’s real estate platform and sits on boards and investment committees for a number of real estate companies. He has 18 years’ experience of principle and private investment and also runs an English Country Estate. Prior to setting up LJ Partnership, he was a Partner at Prostar Capital, a boutique private investment firm with interests in real estate financing and international residential development.
Prior to that he co-founded and was Managing Director of Deutsche Land, an AIM listed real estate investment fund with AUM in excess €600m. Before that, he co-founded Cleland Capital Ltd which focused on UK real estate providing equity and debt financing. He started his career by training as a Fund Manager and became an Equity Analyst in the Pan European Building and Construction Mining sectors advising on over £4 billion at Brewin Dolphin Securities. Jonathan studied Business Management and Marketing at Newcastle University and is a Member of the Securities Institute.
Alex de Meyer
Alexander is a Partner and Chief Operating Officer of LJ Partnership. Prior to setting up LJ, he was a partner at Prostar Capital, a corporate finance firm focusing on private equity and real estate investment. Alexander was Legal Counsel to the Deutsche Land Group PLC, an AIM listed real estate investment fund. Before moving in-house, Alexander worked as an associate in the real estate investment team at SJ Berwin in London and Paris. Alexander trained as a lawyer at Bircham Dyson Bell and worked for L’Oréal SA. He studied law, finance and regulation at BPP law school in London and Classics & Ancient History at Newcastle University.
Sophie is a Partner and General Counsel of LJ Partnership, overseeing LJ’s global legal activities across all service lines. Sophie joined LJ as Legal Counsel in 2012, and was appointed General Counsel in 2014. Sophie trained and practiced as a solicitor within the finance team at Slaughter and May, advising clients on a range of corporate and financing transactions. Sophie studied law at BPP Law School in London and holds a degree in English Literature from the University of Bristol.
Nick is Chief Compliance Officer for LJ Partnership. He has 30 years’ experience of financial regulation and compliance, having previously worked at HM Treasury; the US National Association of Securities Dealers (NASD); the Investment Management Regulatory Organisation (IMRO); in the compliance advisory teams at Deloitte & Touche and Ernst & Young; and as an independent compliance adviser. Nick is an MA of Oxford University.
Partner and Fund Manager
Partner and Fund Manager
Partner and Fund Manager
John entered the commercial real estate market in 1987 and after qualifying as a chartered surveyor at Allsops moved to the investment team at Cushman & Wakefield. There he became a partner and spent the next 18 years advising a range of institutional investor clients on their UK acquisitions and disposals across the full range of real estate sub-sectors including retail (in and out of town), offices (London, Thames Valley and regional cities), logistics, and alternatives. John moved into private equity real estate in 2007 and co-founded Osprey Equity Partners in 2011 and LXI REIT Advisors in 2017.
Partner and Fund Manager
Simon trained and practised as a solicitor at City law firm, Slaughter and May, from 1999 to 2006, following which he spent the next 10 years in private equity real estate, co-founding Osprey Equity Partners in 2011 and LXI REIT Advisors in 2017. Simon’s role covers a wide range of areas, including formulating Osprey’s investment strategies and products, raising equity and debt finance, asset selection, and negotiating and implementing transactions with vendors, purchasers, developers, investors, lenders and joint venture partners.
Jamie has significant transaction management experience in the long income and forward funding real estate space. Prior to joining Osprey Equity Partners, Jamie spent five years in the City as a real estate lawyer where he acted for leading developers and property funds on a variety of deals, ranging from large scale residential developments to substantial commercial property transactions.
Andrew is a director of LXi REIT Advisors, representing LJ Partnership, of which he is the CEO. Prior to setting up LJ Partnership, Andrew was a Director at Salamanca Capital Investments, which is a privately owned group of investment management and advisory companies with offices within Europe, the UK and South America.
Andrew has also been Managing Director of Cushman & Wakefield Residential and Chairman of Cushman & Wakefield Hospitality for Europe, the Middle East and Africa, having transacted on over £5 billion of acquisitions.
Andrew has worked in New Zealand, Australia, Asia, the Middle East and Europe and has concluded private and public equity, corporate finance, and property transactions in over 30 countries during the last 25 years. Andrew was Senior Managing Director of Colliers Jardine and a member of the Group Executive Committee. Andrew was responsible for setting up the group’s operations in London in 1993 and Colliers International in the Middle East in 1996.
All of the Directors are non-executive and are independent of the AIFM and the Investment Advisor. The Directors receive their annual fees in LXi REIT shares (which are subject to a lock in from the date of acquisition by the Directors).
Colin Smith OBE
Colin Smith OBE,
Colin Smith OBE served for ten years as Chairman of Poundland Group Holdings, Europe’s largest single price discount retailer. Prior to this, he was Chief Executive and Finance Director of Safeway Plc, the national supermarket retailer. Colin is currently Chairman of Hilton Food Group plc having served as non-executive director since 2010. Hilton is a specialist retail meat packing business supplying major international food retailers in thirteen European countries and Australia.
He also has experience in the not for profit sector as Chairman of The Challenge Network and previously as a trustee of Save the Children and as Chairman of the food industry sponsored Red Tractor assurance scheme.
Stephen Hubbard serves as Chairman of UK CBRE Group, the world's largest property advisory firm. Stephen has served as Co-Head of CBRE Capital Markets Europe since May 2005. He joined Richard Ellis in 1976 and served as Head of EMEA and UK Capital Markets from 1998 to 2012. He is also Chairman of London Business Network and a member of the Advisory Board for Redevco which is a pan-European property holding company. Stephen has also been a director of Workspace Group plc since July 2014.
Jeannette (Jan) Etherden,
Jan Etherden has over 30 years' experience in the investment industry, as an analyst, fund manager, then a non-executive director. Previously head of UK equities for Confederation Life/Sun Life of Canada, she joined Newton in 1996 as a director specialising in multi-asset segregated portfolios and also was their Investment COO from 1999 to 2001. Subsequently she worked with Olympus Capital Management as business development manager for specialist hedge fund products. She was a director of Ruffer Investment Company Ltd until November 2016 and currently is a director of both TwentyFour Income Fund and Miton UK MicroCap Trust plc.
John Cartwright is Chief Executive of AREF, a post he has held since late 2009. His responsibilities are to represent and promote the interests of members, promote best practice in fund governance and ensure the smooth running of the association. Prior to this, John was with M&G Real Estate (formerly PRUPIM) for nearly 35 years in a variety of roles; latterly as Head of Institutional and Retail Funds and a member of PRUPIM’s Board and Investment Committee. He has more than 20 years’ experience of managing pooled and segregated accounts for both retail and institutional investors. John is also a member of the Investment Committee of Lothbury Property Trust.
1. This is a target only and not a profit forecast and there can be no assurance that it will be met.