LONDON (Alliance News) - LXB Retail Properties PLC Thursday said it has exchanged two contracts to dispose of a substantial part of its investments at Sutton, including the disposal of a J Sainsbury PLC foodstore and the residential land at Sutton, valued together at around GBP47.8 million.
LXB, a closed-ended real estate investment company focused on edge of town and out of town retail assets, said that both sales are expected to be completed by May, when it expects to receive initial cash proceeds of GBP20 million.
The Sutton investments comprise a foodstore which is pre-let to Sainsbury's and two residential blocks. It said the foodstore investment has been sold to The Lime Property Fund, which is managed by Aviva Investors.
LXB said contracts have also been exchanged with Linden Homes, the housebuilding arm of Galliford Try PLC, to dispose of the residential blocks for a cash consideration of GBP12.5 million. It said it will initially receive GBP3.6 million, followed by installments throughout 2015.
"Taking into account the cash proceeds and the value of the 999 year lease on the retail units, the group estimates the total value of these two disposals to be approximately GBP47.8 million, which represents a further uplift to NAV [net asset value] of approximately GBP4.5 million since the September 2014 balance sheet," the company said.
LXB said the additional net asset value is expected to be realised in the group's results in the next two financial years and mainly in the current year.
The company also said it had made good progress on lettings across its portfolio, concluding five new pre-lets over the last month and a half, adding GBP1.5 million to its annual contracted future rent roll.
LXB shares were trading 0.3% lower Thursday morning at 136.60 pence.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
Copyright 2015 Alliance News Limited. All Rights Reserved.
