30 Apr 2019 14:15
LXB Retail Properties Plc
(the "Company" or the "Group")
Dissolution Return of Capital update
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 announce that an acceptable planning permission for the change of use and subdivision works of the Greggs and Blue Mountain Yard units at Rushden Lakes has now been received and that the balancing payment due from the Crown Estate has been agreed, subject to completion of the leases. Blue Mountain Yard have already taken access to fit out their unit, with Greggs due to take access in the coming weeks. During this process, one of the other leisure operators, which is contracted to take two units, has informed the Company that it will not be occupying either of them. Clearly this will increase the competition for the remaining units. In agreeing the balancing payment with the Crown Estate, additional costs of approximately £0.7m were required to be factored in over and above those previously estimated, primarily in relation to vacant units and service charge caps.
Furthermore, Highways England have also confirmed that they do not expect the contractor to finish all the remaining outstanding highways works before the end of May 2019 and that the expected final contract sum (including irrecoverable VAT) will result in further costs of over £0.4m.
As a result of the above and further to the announcement made on 18 April 2019, the final Court approved return of capital to shareholders proposed to be made in connection with the dissolution of the Company is expected to be approximately £2.0m, (1.2 pence per share).
For further information please contact:
LXB3 Partners LLP Tel: 020 7432 7900
Tim Walton, CEO
J.P. Morgan Cazenove (NOMAD) Tel: 020 7742 4000
Bronson Albery/Paul Hewlett
Buchanan Tel: 020 7466 5000
Charles Ryland/Henry Wilson