LONDON (Alliance News) - LXB Retail Properties PLC on Thursday said it has sold its Kingsmead Stafford investment to private investment vehicle Triple Jersey Ltd, in a deal which will result in net proceeds of GBP4.2 million.
The real estate investment company focused on edge of town and out of town retail assets said a previous deal it had agreed with Wm Morrison Supermarkets PLC, regarding the surrendering of LXB's leasehold interest in the site, will take place simultaneously with completion of the sale.
Morrison had previously signed a lease agreement for the 71,500 square foot foodstore at the site, which had anchored the Kingsmead Stafford scheme. Two smaller units were also developed at the site.
LXB Retail said the proceeds from the two transactions, the sale of the investment and surrendering of the leasehold interest, net of GBP21.8 million bank debt in relation to the scheme, totalled GBP4.2 million.
Completion of the deals is expected next Wednesday, at which time the net proceeds will be available to be returned to shareholders. The overall net impact of the transactions is expected to be a loss of less than 1.00 pence per share, LXB said.
The company added that it remains committed to deliver practical completion of the final part of Kingsmead, expected to be achieved on September 12.
"These transactions remove a major element of uncertainty around shareholder returns and take the group one step closer to the completion of the mandate given to the board by shareholders in February of this year," said Tim Walton, chief executive of LXB Adviser LLP, which advises the London-listed fund.
Shares in LXB were up 1.0% at 62.50p on Thursday morning.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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