LXB.L Regulatory News (LXB)

LXB Retail Properties Plc ('LXB Retail')

Acquisition of Stone Lake Retail Park in Greenwich

LXB Retail announces that it has acquired the freehold interest in Stone Lake Retail Park in Greenwich from AVIVA Life & Pensions UK Ltd for a total consideration of £27,835,000 including acquisition costs. The acquisition is being funded from existing cash resources.

The property is located on Woolwich Road in Greenwich, in close proximity to the three other sites on Bugsby's Way, which LXB Retail acquired earlier this year.

The property comprises an existing retail warehouse park constructed within the last 15 years, providing a total of about 92,000 sq ft of accommodation in six retail units. The park, which is let to Currys, PC World, Carpetright, Halfords and Harveys on leases with an average unexpired lease term of 11 years and which currently produces an aggregate initial rent of £1,654,597 per annum, has the benefit of a wide "bulky goods" retail consent. There is currently one vacant unit of circa 20,000 sq ft on the park, although this unit is under offer to an established out of town retailer. On the assumption that this letting is completed at the agreed level this investment will reflect an attractive initial yield of 6.75%. Over half the space benefits from contracted fixed increases which take the equivalent yield to 7.2%.

The company has now invested £122m since IPO 15 months ago representing 80% of proceeds raised at IPO and during a subsequent placing in July 2010.

Tim Walton, Chief Executive LXB Manager LLP, said "This off market acquisition provides LXB Retail with the flexibility to accommodate retailers into modern affordable formats in connection with its wider holdings in the Greenwich area. We are continuing to see good off - market deal flow and expect to close on further opportunities in the near future."