LXB.L Regulatory News (LXB)

LXB RETAIL PROPERTIES PLC

(the "Company" or the "Group")

SUCCESSFUL PLANNING OUTCOME AT RUSHDEN LAKES

and

GENERAL PORTFOLIO UPDATE

LXB Retail Properties Plc is pleased to announce that its planning permission for a 494,329 sq ft retail and leisure investment at Rushden Lakes is now beyond challenge.

In June, the Secretary of State announced his decision to support the Planning Inspector's recommendation to uphold the planning permission and the six week period for further challenges under judicial review procedures has now expired with no such challenges being made. This concludes a planning process which commenced with East Northamptonshire Council's resolution to grant planning permission in October 2012 and included a three week Public Inquiry in July 2013.

Detailed discussions are now under way with the local planning authority and other statutory bodies to discharge the planning conditions. Pre-lets are already in place with M&S and Costa and further significant retail and restaurant interest has been received since the Secretary of State's decision was announced. The Group hopes to have secured all the pre-lets necessary in the coming months so that a start can be made on site early in 2015. It is anticipated that the first phase of Rushden Lakes will be open by May 2016.

As indicated in the Group's Interim Results in June, the balance sheet at 31 March reflected a conservative valuation for this investment because of the planning uncertainty. The Board anticipates that the resolution of the planning position at Rushden Lakes will have a significant impact on the investment's valuation as at 30 September 2014.

General Portfolio Update

In addition to announcing the successful conclusion of the process at Rushden Lakes, the Group is also pleased to provide an update on developments with the investments at Ayr, Banbury, Biggleswade, Greenwich, Stafford and Truro since the announcement of Interim Results.

Ayr

On 24 June 2014 the Group announced that South Ayrshire Council planning committee had resolved in principle to grant planning permission for a 101,000 sq ft foodstore, 750 new homes, a new Primary school and a neighbourhood centre. The announcement noted that the planning decision was subject to review by Scottish Ministers and the Group has recently been advised that it will not be called in for Ministerial review. The planning permission will become fully implementable on signing a S75 Planning Agreement and expiry of the judicial review period which, for Scottish matters, is 12 weeks.

Discussions on the detailed terms of the S75 Planning Agreement are progressing. There are a number of aspects to be resolved to ensure that a viable investment can be brought forward at Ayr. Nevertheless, the combination of the positive planning decision and the Central Government support represents a major step forward for this investment.

The Group hopes to have concluded negotiations on the S75 agreement within the next four months.

Banbury Gateway

The Interim Results announcement indicated that the Group had served notice to secure vacant possession and the acquisition of the Banbury Gateway site subsequently completed in July 2014. The vendor completed its purchase of the replacement site from the Group at the same time.

Minor amendments to the existing planning permission required to accommodate the pre-lettings to Arcadia and River Island have now been approved. Consequently, subject to discharging the usual pre-commencement conditions, the Group plans to make a start on site in September 2014. The tendering process to select a building contractor has been completed and detailed negotiations of a fixed price 'Design and Build' contract are well advanced. The vast majority of the scheme is due to be completed by October 2015 with a scheme opening planned for Christmas 2015/early 2016.

Lettings continue to progress well with 90% of the ground floor space now either pre-let or in solicitors' hands.

The Group remains on track to satisfy the terms of the conditional agreement with The Crown Estate to acquire the Group's interest in Banbury Gateway, and to complete the disposal in autumn 2014

Biggleswade

The Group has made further progress towards securing vacant possession with Halfords having recently agreed to surrender the current store and entering into a pre-let to take space at the new development. The Compulsory Purchase Order hearing was held on 8 July as scheduled. No objectors attended the hearing and the Group awaits the formal outcome.

Greenwich

The Interim Results contained details of the Group's agreed sale of land adjacent to the Sainsbury's/M&S development conditional on securing a Change of Use for planning purposes. The planning condition has now been satisfied and the sale completed in July generating proceeds of £2m.

Stafford

After lengthy negotiations, the Group has recently completed agreements with Stafford Borough Council and Staffordshire County Council allowing the acquisition of the foodstore site now, rather than on completion of the multi-storey car park as originally agreed. This accelerates the practical completion of the foodstore, which is pre-let to Morrisons, by 12 months.

Construction of the multi-storey car park and ground floor retail/leisure units commenced in June 2014 and the main construction activities for the Riverside retail scheme commenced in July 2014.

Truro

The Group was originally advised that the application for planning permission for the mixed-use development at Willow Green Farm would be considered by the local planning committee in late June 2014. That meeting was deferred at late notice and the Group's latest information is that the matter will be considered by the planning committee towards the end of August 2014.

The planning application for Higher Newham Farm will now be submitted in August 2014 and the Group remains hopeful of a decision in late 2014.

Tim Walton CEO of LXB Adviser LLP said:

'We are delighted that planning permission for our Rushden Lakes development is now beyond challenge. We can now press ahead with this major development which has the potential to be one of the UK's foremost retail and leisure destinations and which furthermore will deliver a significant uplift in shareholder value.

It is also pleasing to see continued progress being achieved elsewhere and we look forward to providing further updates in due course.'

For further information please contact:

LXB Adviser LLP Tel: 020 7432 7900

Tim Walton, CEOBrendan O'Grady, FD

Buchanan Tel: 020 7466 5000

Charles Ryland/Sophie McNulty/Clare Akhurst