25 Jun 2015 07:00
For Immediate Release 25 June 2015
LXB RETAIL PROPERTIES PLC
(the "Company" or the "Group")
Update on progress at Rushden Lakes, Truro Threemilestone planning and
sale of residential interests at Sutton
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:
· a further major anchor tenant letting at Rushden;
· a planning update at Threemilestone, Truro; and
· completion of the sale of the Group's residential interests at Sutton.
Rushden Lakes letting progress
The Group's Interim Results for the period ended 31 March 2015 announced on 12 May 2015 referred to a potential pre-let to another major anchor tenant for a store of at least 32,000 sq ft of ground floor space. The Group is pleased to announce that this second anchor tenant - House of Fraser - has now signed an agreement for lease at Rushden Lakes. This is the third major letting at this location alongside M&S and H&M and brings the amount of space now let to a minimum of 72,000 sq ft of ground floor space (144,000 sq ft including mezzanine space). The scheme is building considerable momentum and detailed discussions are in progress with other retailers to come in alongside these anchor stores.
Site remediation and preparation works have already commenced and the Group is aiming to sign a build contract towards the end of the year to carry out the main body of the works. Based on the current work programme, the Group expects to be able to hand Phase 1 units over in October 2016 for tenants to start their fit outs.
Threemilestone, Truro planning update
The Group's Interim Results also noted that the resolution by Cornwall Council to grant planning permission for the Threemilestone scheme comprising 435 houses (of which 40% will be affordable homes), a 78,000 sq ft foodstore pre-let to ASDA, a pub, community centre, primary school and care home was subject to referral to the National Planning Casework Unit (NPCU) which would decide whether to call in the planning application for a public inquiry. The Group is pleased to confirm that the NPCU has announced it has decided not to call in this planning resolution.
Consequently, the Group hopes to finalise the Section 106 agreement in the next few weeks after which outline planning consent will be issued. The scheme will still require approval of the detailed design and road works, the preparation of which is ongoing.
Sale of Sutton residential interest
The sale of the residential element of the Group's investment at Sutton to Linden Homes, the housebuilding arm of Galliford Try Plc, which was first announced on 29 January 2015, has now been completed for a cash consideration of £12.5m. In addition to the cash receipt, Linden Homes will also fund the construction of the ground floor retail units and grant a 999 year lease on these units back to the Group (at nil premium and a peppercorn rent) when the residential towers are completed. Initial cash proceeds of £3.6m have been received with the remainder to be paid in instalments throughout 2015 and early 2016.
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/Vicky Watkins/Jason Day