1 Aug 2011 07:00
For immediate release 1 August 2011
LXB Retail Properties Plc
Foodstore Led Acquisition at Metz Way, central Gloucester
LXB Retail Properties Plc ("LXB"), the real estate investment company, announces that it has exchanged contracts, subject to planning, with Network Rail to acquire 18 acres at Metz Way, central Gloucester for £6.1 million. LXB has also signed an Agreement for Lease with WM Morrison Supermarkets plc which is to take a 25 year lease for a new 71,000 sq ft foodstore on part of the site. This lease is also conditional on securing an appropriate planning consent and there is a tenant's break option at 20 years.
Metz Way, which forms part of a wider regeneration programme known as the Railway Triangle Corridor, is being promoted by Gloucester Heritage Urban Regeneration Company ("GHURC"). The development by LXB at Metz Way will enable Network Rail to access additional land they will retain to the South of Metz Way and provide future opportunity for them to consolidate their operational land and release further sites for residential and employment development along the Railway Triangle Corridor.
LXB has been working with both GHURC and Gloucester City Council to progress a £34 million mixed use development of the Metz Way site which aims to comprise a 71,000 sq ft foodstore which has been pre let to Morrisons, employment space that would be suitable for high tech manufacturing and engineering companies, job training facilities, car showrooms, a trade park, a drive through restaurant/coffee shops, incubator units and further light industrial units to create a total of approximately 140,000 sq ft of employment space in addition to the foodstore. LXB intends to submit a planning application for the site today and aims to start construction at the site in 2012 with completion of the enabling works and foodstore in 2013. The site is subject to a bid by the newly approved Local Enterprise Partnership to become an Enterprise Zone.
Commenting on the acquisition Tim Walton, CEO of LXB Manager LLP, said;
"We are delighted to have concluded another major acquisition for LXB, and to announce a second significant pre let with Morrisons. This scheme will act as the catalyst for a major regeneration of a prominent site in central Gloucester. Metz Way is the largest vacant site in the city under one ownership and has been derelict for over 20 years.
The high cost required to access, service and decontaminate the site, has previously meant development was not viable, however, the foodstore anchor tenant will enable the site to be opened up without recourse to any public funds and, along with the employment space, we expect it will create up to 1,000 jobs in an area that suffers from high unemployment. We continue to see new off market opportunities and look forward to securing more of these in the future."
Richard Graham, the MP for Gloucester, said;
"This is a significant step forward to replacing an enormous area of derelict wasteland at the heart of our city, with about a thousand light industrial jobs. I am delighted that the LXB plans for land decontamination, new roads and a new industrial park aim for completion in 2013. Strong support from businesses and communities for our bid for Enterprise Zone status for the Railway Triangle Corridor will help attract good businesses both in the Triangle and the Barton sites"
Paul James, Leader of the Council and Cabinet Member for Regeneration and Culture commented;
"This announcement is another sign of investor confidence in Gloucester, despite a fragile economic climate nationally. The proposals will have to be determined by the Council's Planning Committee in due course, but I very much welcome the prospect of a privately-funded scheme bringing hundreds of jobs to Gloucester and ridding the city of one of its worst eyesores."
Chris Oldershaw, Chief Executive of the GHURC commented;
"We warmly welcome LXB's current proposals for the mixed use regeneration of the gateway Railway Triangle site.
Having worked closely with LXB's management team during the masterplanning stage, we are confident of their ability to deliver this strategically important site - securing major new employment opportunities in a high quality landscaped setting.
LXB's investment at the Railway Triangle confirms a continuing confidence in the city's regeneration programme which has attracted £400 million of private sector investment over the last five years"
For further information please contact:
LXB Manager LLP Tel: 020 7432 7900
Tim Walton, CEO
Brendan O'Grady, FD
Buchanan Communications Tel: 020 7466 5000
Charles Ryland / Nicola Cronk