LONDON (Alliance News) - LXB Retail Properties PLC Tuesday said it has exchanged contracts to sell its investment the Brocklebank retail park in Greenwich in south London to the Charities Property Fund, conditional to some construction and letting-related matters being fulfilled.
LXB said these matters are "all in hand" and are expected to be satisfied by early 2016, at which point it will receive initial cash proceeds of GBP22.8 million.
Additionally, the Charities Property Fund will fund development costs of the retail park, with LXB Retail retaining responsibility for overseeing the development of the park and letting the final remaining unit.
The deal reflects and underlying yield of 4.25% for the investment, and a further uplift to net asset value of GBP3.7 million, LXB said.
An estimated further GBP5.2 million will be payable, although the level of this payment will depend on the final letting terms of the remaining unit, and total development costs.
"This is excellent news for the shareholders of LXB Retail Properties and a testament to the quality of the group's investments. The final outcome in terms of NAV accretion is dependent on the terms which can be achieved on the final unit but with adjacency to three major retail brands in a great (and growing) catchment area, there is every reason to be optimistic," said Chief Executive Officer Tim Walton in a statement.
Shares in LXB were up 1.5% at 93.92 pence Tuesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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