LONDON (Alliance News) - LXB Retail Properties PLC, the Jersey-resident closed-ended real estate investment company, on Thursday said it pre-let the last remaining unit at Brocklebank Retail Park Greenwich in south east London.
An agreement for lease was exchanged with retailer Mothercare on Thursday for a 13,000 square foot unit, the company said, which following earlier pre-lets to Next, Primark and Aldi means the retail park is now fully pre-let.
The agreement with Mothercare is subject to planning and other obligations, all of which are expected to be satisfied within the next few weeks, LXB said.
In December, LXB announced the sale of its interest in the Brocklebank investment to The Charities Property Fund, managed by Savills Investment Management, for an initial GBP22.8 million in cash.
The sale terms provided that the Charities Property Fund would fund the development costs, with the company retaining responsibility for overseeing the development as well as for letting the final unit, LXB said.
A further payment, which was estimated at GBP5.2 million at the time of sale, is due to be received when the scheme has achieved practical completion and all of the leases have been completed with the overall transaction reflecting an underlying net initial yield of 4.25%.
The final amount depends on both the final letting terms and the total development costs.
LXB said construction work is progressing well and practical completion is expected in autumn 2016.
Shares in LXB were up 1.5% at 101.00 pence on Thursday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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