LONDON (Alliance News) - Property investment firm LXB Retail Properties PLC said on Friday that the Royal Court of Jersey has sanctioned the reorganisation of the group, which will see the company sells its assets and wrap up.
The reorganisation involves transferring certain assets in the company to IW Midco Ltd. The remaining assets will then be sold off in order to return cash to shareholders. Finally, shares in the AIM-listed company will be cancelled after March 31, 2019.
As at the end of September 2017, LXB Retail reported net asset value per share of 29.52 pence, down from 56.70p at the end of the prior year. The company also reported a loss per share of 9.18 pence, deeper than the 8.89p loss reported the year prior.
LXB Retail attributed the losses to a challenging operating environment in terms of the retail and lettings market, with "unforeseen losses on contracts" at Rushden Lakes in Northamptonshire and Stafford Riverside Property in Staffordshire.
The delays in planning for Stafford and Rushden Lakes meant the projects would not have been completed until August 2018 and January 2019, respectively. The delay hampered LXB's original strategy of setting up a new AIM-listed company to deal with longer-term investments, as the inherent risks associated with the assets would burden its balance sheet.
Shares in LXB Retail Properties were down 4.2% at 21.22 pence on Friday.
