19 Dec 2016 07:00
19 December 2016
LXB Retail Properties Plc
('LXB', the 'Company' or the 'Group')
Update on Disposals and Cash Receipts
LXB Retail Properties Plc, the Jersey resident closed-ended real estate investment company focused on edge of town and out of town retail assets, today announces further positive progress in delivering on the shareholders' mandate to realise cash from the Group's portfolio of investments.
The Group's announcement on 21 November 2016 (the Results Announcement) confirmed that progress was being made towards the sale of a number of its remaining investments and that cash realisations from other forward funded projects were also expected in the near future. The Group is pleased to announce today that it has completed the sale of part of its land interests at Gloucester and concluded an agreement whereby ASDA will surrender its leasehold interest in a foodstore at Willow Green Farm Truro. The Company can also confirm that all the contractual conditions which need to be fulfilled in order to release the anticipated further cash receipts in connection with the forward funded investments at Banbury and Sutton, have been satisfied and the respective payments are expected by the end of December.
Taken together, the conclusion of these matters will realise cash of £8.5m and result in the recognition of an increase in NAV of £1.9m (1.12 pence per share) over the 30 September 2016 NAV which was reported in the Results Announcement.
The Group is exploring its options in relation to the Willow Green site at Truro. The Group confirms today that solicitors have been instructed in connection with the potential disposal of two other investments. Further announcements will be made in due course if these developments result in binding contracts.
The Group continues to make good progress with its remaining investments. The interest from potential occupiers of the remaining three units at Biggleswade continues; solicitors have recently been instructed in connection with letting a 5,581 sq ft unit and the other two units are under offer awaiting the retailers' board approvals.
The Group has also renegotiated the terms of an agreement with a consortium of housebuilders who intend to develop in the vicinity of the Biggleswade retail park and will benefit from the dual carriageway works funded by LXB. Previously, the Group was entitled to receive £1.96m dependent on planning agreement triggers outside LXB's control. The revised arrangements accelerate receipt of one third of those monies and give the Group a contractual right to receive £0.65m from one of the housebuilders by January 2018 at the latest. The other two thirds will become due on completion of the first house by one of the other housebuilders but, as previously noted, the likelihood and timing of that eventuality is entirely outside of LXB's control. Given the shareholder mandate for early cash realisations, the Group has also explored the possibility of substituting the contingent two thirds receipt for a lesser but contractually committed amount, however it proved impossible to agree terms which would be acceptable to all parties.
Since 21 November 2016, the Group has secured another letting at Stafford Riverside meaning that there are now just three units available to let there, as well as a further five pre-lets at Rushden Lakes.
For further information please contact:
LXB Adviser LLP Tel: 020 7432 7900
Tim Walton, CEO
Brendan O'Grady, FD
J.P. Morgan Cazenove (NOMAD) Tel: 020 7742 4000
Bronson Albery/Paul Hewlett
Buchanan Tel: 020 7466 5000
Charles Ryland/Victoria Hayns/Patrick Hanrahan