Property trust buys garden centre in £17m spending spree

A property investment trust has bought a Dobbies garden centre as part of £17.1 million worth of deals announced today.

The LXi real estate trust has acquired the 18-acre centre in Morpeth, Northumberland and leased it back to Midlothian-based Dobbies under a 30-year agreement.

The trust has also exchanged contracts to purchase a new gym facility in Andover in Hampshire, which has been fully pre-let to Pure Gym.

The acquisitions were funded by the disposal of a portfolio of social housing assets for £14.05 million.

Late last year LXi announced it was investing £15 million in a clutch of properties in Scotland including the development of a 70-bedroom Travelodge hotel at Edinburgh Park. The trust is also funding the development of Lidl store and B&M discount store to be built at Cowdenbeath for a total of £8.5m.

Earlier this month Dobbies Garden Centres announced a deal which will see it almost double its store portfolio.

The group, which is based at Lasswade in Midlothian, is acquiring 31 sites south of the Border from Wyevale Garden Centres (WGC), increasing its number of branches to 69 and taking annual sales over £300 million.


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