LONDON (Alliance News) - LXB Retail Properties PLC on Tuesday said it has exchanged contracts on its Biggleswade and Rushden investments on a forward-funding basis and intends to use the proceeds from the two disposals to return cash to shareholders.
LXB said it is selling its entire investment in Biggleswade, primarily the A1 Retail Park, for GBP58.5 million, with a further GBP10.2 million due upon practical completion of the deal and a further GBP11.3 million due linked to the final investment appraisal. In total, the Biggleswade sale will generate the company around GBP80 million, reflecting an underlying overall yield of 4.75% for the retail elements of the scheme.
The company also has struck a deal to sell the Rushden Lakes leisure and shopping site in Northamptonshire to The Crown Estate for GBP70 million, reflecting an underlying overall yield of 4.65% for the retail elements.
Separately, LXB said it expects to be paid GBP23.6 million in cash from the disposal of its investments in Sutton by mid-May.
LXB said it expects to use the cash from the Sutton deal, together with the initial Biggleswade consideration, to make a substantial cash return to shareholders. It said intends to hold a meeting of shareholders in May to discuss the cash return.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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