23 Dec 2016 12:15
For immediate release | 23 December 2016 |
LXB RETAIL PROPERTIES PLC
('LXB', the 'Company' or the 'Group')
Disposal of Neats Court Retail Park, Sheppey
LXB Retail Properties Plc, the Jersey resident closed-ended real estate investment company focused on edge of town and out of town retail assets, is pleased to report that on 23 December 2016 it exchanged contracts for the sale of its investment at Neats Court Retail Park, Sheppey to Lightstone Neatscourt LLP. The property is let to seven retailers: Sports Direct, B&M, Iceland, The Original Factory Shop, Pep & Co, Cancer Research and Poundland at a current rental of £851,510 per annum.
The sale is unconditional and completion is expected to occur on 25 January 2017 when cash proceeds of £11,342,500 will be received. A 10% deposit was paid on exchange of contracts.
Completion of the disposal will release cash of £6,342,500 after repayment of the £5,000,000 bank borrowings which are secured on the investment, and details of the Board's proposals for use of the net proceeds will follow when the transaction has completed. The sale price, which is not materially different from the valuation included in the Net Asset Value reported in the Group's Results for the year to 30 September 2016, reflects a net yield of 7% for the Group's freehold interest.
After completion of this disposal, the Group's remaining interest at Sheppey will be the 10,000 sq ft retail and restaurant scheme which is currently under construction and scheduled for completion in June 2017. Pre-lets are already in place with Costa Coffee, Burger King, Subway and Starbucks and marketing of the remaining three units, comprising approximately 3,000 sq ft in total, continues.
Since the last announcement on the 19 December 2016, the Group is pleased to announce that it has also exchanged another five pre-lets at Rushden Lakes.
Tim Walton, CEO of LXB Adviser LLP, said:-
'The Group continues to make good progress with its remaining investments. The sale of Neats Court Retail Park represents a further significant step in effecting an orderly disposal of the Group's remaining assets in accordance with the Shareholder vote made in February of this year.'
For further information please contact:
LXB Adviser LLP Tel: 020 7432 7900
Tim Walton, CEO
Brendan O'Grady, FD
J.P. Morgan Cazenove (NOMAD) Tel: 020 7742 4000
Bronson Albery/Paul Hewlett
Buchanan Tel: 020 7466 5000
Charles Ryland/Victoria Hayns/Patrick Hanrahan