London-based property investor and FTSE 250 constituent LXi REIT today confirmed that it is abandoning a deal to buy 18 Sainsbury's stores in southern England after suspending equity funding, citing stock market volatility.
The reversal comes only five days after LXi confirmed talks of a £500mln deal with the supermarket chain that was to be funded through a mix of new equity and debt.
Sainsbury's confirmed the collapsed deal, but said it will have no impact on its financial guidance, according to a Reuters report.
The news is perhaps unsurprising, given that the pound has plummeted to all-time lows against the US dollar, with more rate increases all but confirmed.
LXi’s supermarket portfolio consists of Lidl, Aldi, Co-op, Tesco and Asda stores located across England.