LXi REIT plc, a prominent player in the UK commercial property market, has confirmed that it is in advanced stages of negotiating the sale of 66 Travelodge hotels. The deal, which is currently in solicitors’ hands, is valued at £210 million, aligning with the company’s book value as of 30 September 2023.

The potential sale, if successful, would lead to a substantial part of the proceeds being allocated to debt reduction. This move is expected to decrease the Group’s Loan-to-Value (LTV) ratio from 38% to 34%, as recorded on 30 September 2023. Additionally, the sale would adjust the proportion of Travelodge in the company’s total rent roll, reducing it from 18% to 11%.

However, the company has noted that the sale is still subject to contract and due diligence processes, and therefore, the completion of the sale is not yet guaranteed. LXi REIT plc will make a further announcement once the contracts have been exchanged.

LXi REIT plc, known for its investment in commercial property assets across the UK, focuses on properties with long, inflation-linked leases to a diverse range of strong tenant covenants. The company’s investment strategy includes fixed-price forward funded developments that are pre-let to reputable tenants, with full planning permission in place, while avoiding direct development activity or development risk.

The company, a Real Estate Investment Trust (REIT) incorporated in England and Wales, is listed on the London Stock Exchange’s main market and is part of the FTSE 250, EPRA/NAREIT, MSCI, and STOXX Europe 600 indices. LXi REIT plc targets a dividend of 6.6 pence per ordinary share for the year commencing 1 April 2023, which is a goal rather than a profit forecast.

For further details, information is available on the company’s website, and additional updates will be provided by LXi REIT Advisors Limited and their communications advisor, H/Advisors Maitland.