Following LXi REIT’s announcement on 22nd September 2022 to acquire 18 Sainsbury’s stores, the company has decided not to proceed further with the portfolio purchase.

Sainsbury’s was in discussions with LXi REIT plc (LXi) to sell 18 supermarket stores, predominantly located in Southern England, to the company for approximately £500 million on a sale and leaseback basis, according to the London Stock Exchange (LSE).

LXi previously announced that it was “discussing with investors” a possible share issue to part-fund this transaction and said that there was “no certainty” that the transaction or the associated share issue would take place.

The LSE reported that Sainsbury’s and LXi had reached agreement on an acquisition price for the stores in the Highbury and Dragon investment vehicles, and the acquisitions were to be completed in the first half of the financial year to March 2024. Sainsbury’s has held a 49% interest in Highbury and Dragon since it was created in 2000.

LXi said previously that the completion of the acquisition was conditional upon the Company raising the necessary equity funding.