13 Jan 2014 11:00
For immediate release | 13 January 2014 |
LXB RETAIL PROPERTIES PLC
(the "Company" or the "Group")
Update on Banbury and Sutton Investments
The Group presents an update on its investments at Banbury and Sutton.
Banbury
On 17 December 2013, the Group announced that the High Court had dismissed claims by Scottish Widows plc ("Scottish Widows") and Aegon UK Property Fund Ltd ("Aegon"), both of whom own retail investments in the Banbury area, for a judicial review of a planning permission granted for the Group's proposed Banbury Gateway retail investment. The claims had been brought on a number of grounds, all of which were dismissed by the High Court.
The Group has been advised that on 6 January 2014, both Scottish Widows and Aegon filed Notices in the Court of Appeal seeking permission to appeal against the decision of the High Court, but only in relation to one of the grounds, that the council failed to secure appropriate Section 106 agreements.
Although disappointed by this development, the Group considers the decision of the High Court to be correct in all regards and leading Counsel acting for the Group believes that the intended appeals are wholly without merit. The Group will, therefore, be opposing the applications for permission to appeal, which, as with the original judicial review claims, it will argue are motivated by commercial, rather than legitimate legal, considerations.
On 4 December 2013, the Group reported that pre-lets covering 74,000 sq ft were in solicitors' hands. Contracts have now been exchanged on one of these, River Island having committed to take a 10 year lease on a 14,000 sq ft (7,000 sq ft on ground) store. Exchange of contracts is anticipated shortly on the other pre-letting for a 60,000 sq ft (30,000 sq ft on ground) store on a 15 year lease and discussions continue with other potential occupiers.
Sutton
On 20 December 2013, the Group announced that it had secured a resolution to grant planning consent for the proposed comprehensive redevelopment of a six acre town centre site to include a 123,000 sq ft foodstore (pre-let to Sainsbury's), 27,500 sq ft of further retail space and 186 residential units, subject to a number of the usual planning and construction conditions.
The Group has assembled many components of the proposed site and recently made further progress on this with the purchase of a parcel of land from National Grid for £2.15m. Terms have also been agreed with Southern Gas Networks (the owner and operator of the gas holder site) to purchase the final part of the site once the gas holders are decommissioned. It is anticipated that initial demolition and site clearance works will begin by spring 2014.
These enabling works are expected to take nine months, after which construction of the foodstore will begin, with practical completion anticipated in late 2015.
For further information please contact:
LXB Adviser LLP Tel: 020 7432 7900Tim Walton, CEOBrendan O'Grady, FD
Buchanan Tel: 020 7466 5000Charles Ryland/Sophie McNulty/Helen Greenwoodwww.buchanan.uk.com