LONDON (Alliance News) - LXB Retail Properties PLC on Monday said it has completed a number of contracts which will result in Swedish homewares and furniture retailer IKEA opening a new store in Greenwich, southeast London.
LXB signed a deal in May 2011 for the pre-let of a new J Sainsbury PLC store at Charlton Riverside Place and, as part of that deal, agreed to acquire Sainsbury's existing store at Greenwich Peninsula for GBP16.0 million.
It then reached a deal with IKEA under which the flatpack furniture company would acquire the former Sainsbury's store and adjoining Comet store, subject to the retailer securing planning permission for a new 350,000 square foot store.
These conditions have now been completed, and IKEA is set to complete the acquisition of the store by the end of this week.
In addition to the IKEA deal, LXB said it has exchanged contracts with investment manager Royal London Asset Management to buy the site next to the proposed new IKEA store and currently occupied by DIY retailer B&Q for GBP38.0 million, representing a 5.6% net initial yield. B&Q is part of Kingfisher PLC.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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