12 May 2016 13:00
| 12 May 2016 |
LXB RETAIL PROPERTIES PLC
(the "Company" or the "Group")
LXB completes Pre-Lets of Brocklebank Retail Park
Final unit secured with Mothercare ahead of expected Autumn practical completion
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 it has pre-let the last remaining unit at Brocklebank Retail Park Greenwich.
An Agreement for Lease was exchanged with Mothercare on12 May 2016 for a 13,000 sq ft unit. Following the earlier pre-lets to Next, Primark and Aldi, this 144,435 sq ft (76,150 sq ft on ground floor) retail park is now fully pre-let. The agreement with Mothercare is subject to certain planning and other obligations, all of which are expected to be satisfied within the next few weeks.
On 30 December 2015, the Group announced the sale of its interest in the Brocklebank investment to The Charities Property Fund, managed by Savills Investment Management for initial cash proceeds of £22.8m. The sale terms provided that the Charities Property Fund would fund the development costs with the Group retaining responsibility for overseeing the development as well as for letting the final unit.
A further cash receipt, which was estimated at £5.2m at the time of sale, is due to be received when the scheme has achieved practical completion and all of the leases have been completed with the overall transaction reflecting an underlying net initial yield of 4.25%. The final amount is dependent on both the final letting terms and the total development costs.
Construction work is progressing well and practical completion is expected in autumn 2016.
For further information please contact:
LXB Adviser LLP Tel: 020 7432 7900
Tim Walton, CEOBrendan O'Grady, FD
J.P. Morgan Cazenove (NOMAD) Tel: 020 7742 4000
Bronson Albery/Paul Hewlett
Buchanan Tel: 020 7466 5000
Charles Ryland/Victoria Watkins/Patrick Hanrahan