28 Jun 2010 07:00
FOR IMMEDIATE RELEASE 28 June 2010
LXB Retail Properties Plc (the "Company", "LXB Retail")
LXB Retail makes further acquisitions in Greenwich
LXB Retail announces that it has acquired the freehold interest in two further retail sites in Greenwich from Schroder Exempt Property Unit Trust for a total consideration of £21.24m including acquisition costs, to be funded from existing cash resources. One of the sites is subject to an outstanding rent review due in January 2010 and the stated purchase price includes a top up payment calculated by reference to the expected annual uplift to be achieved at that review.
The two properties adjoin and sit adjacent to the Bugsby's Way Retail Park which was acquired by the Company earlier this year.
The first property comprises a primarily vacant site which has an implementable planning permission for the development of approximately 45,000 sq ft of unrestricted retail consent together with permission for the development of circa 72,000 sq ft of light industrial space and 20 residential units.
The second property comprises an existing first generation retail warehouse of circa 36,750 sq ft which is let, by way of assignment, to Wickes for a further 10 years. This property has the benefit of Open A1 'non-food' planning permission.
The properties currently produce an aggregate rent of circa £0.585m per annum and the Wickes unit is subject to an outstanding rent review from January of this year.
LXB Retail has acquired these properties to broaden its options for comprehensive redevelopment within the wider Bugsby's Way retail area.
This acquisition marks LXB Retail's fourth purchase following the two significant acquisitions in Greenwich announced in January and March 2010 and the assets acquired at Biggleswade, details of which were announced last month.
Today's acquisition means that over 85% of the net IPO funds have now been invested; LXB Retail continues to pursue a pipeline of further opportunities.
Tim Walton, CEO of LXB Manager, commented:
"This is LXB Retail's third significant acquisition in Greenwich and complements the group's existing holdings. We believe there is significant retailer demand for modern floor space in this location and in total the group now controls over 210,000 sq ft of retail space with predominantly unrestricted consent which will enable it to bring forward a more comprehensive plan for the area".
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/George Prassas