LXB Retail Properties Plc Significant progress at Rushden Lakes (6397W)
November 16 2017 - 2:00AM
UK Regulatory
TIDMLXB
RNS Number : 6397W
LXB Retail Properties Plc
16 November 2017
16 November 2017
LXB RETAIL PROPERTIES PLC
(the "Company" or the "Group" or "LXB")
Significant progress at Rushden Lakes
LXB Retail Properties Plc, the Jersey resident closed-ended real
estate investment company focused on edge of town and out of town
retail assets, is pleased to report that the review period
associated with the revised planning consent for Rushden Lakes
which was issued on 11 September 2017 has now expired with no
objection. In consequence, the enhanced planning consent which was
approved by the Planning Committee of East Northamptonshire Council
on 8 February 2017 is now confirmed and beyond challenge. That,
coupled with further letting progress reported below, means that
the revised agreement providing for The Crown Estate to fund the
next two phases at Rushden Lakes is now unconditional.
In total, The Crown Estate has committed to fund a further
215,000 sq ft of retail and leisure space at this Northamptonshire
destination. Delivered over three additional phases of development,
this will bring the total size of Rushden Lakes to more than
445,000 sq ft. LXB is already on site with Phases 2 and 3: the
anticipated practical completion date for Phase 3 is June 2018 and
for Phase 2 it is January 2019. The Group expects work to start on
Phase 4 in May 2018.
Phase 2 will see the creation of a new leisure development,
offering more than 150,000 sq ft of space, and comprised of 11
restaurants, 5 leisure units and a 14-screen cinema from Cineworld.
In Phases 3 and 4, up to 130,000 sq ft (65,000 sq ft on ground
floor) of additional retail space will be added.
Once all phases are delivered, Rushden Lakes will be home to
over 40 retail units, 18 restaurants, 5 leisure providers, a
14-screen cinema, a boathouse and The Wildlife Trust visitor
centre. The total parking provision will increase to more than
1,900 spaces once all phases are delivered.
90% of the Phase 2 space is pre-let, with a further 2% in
solicitors' hands. Phase 3 is 63% pre-let following the recent
signing of an agreement for lease with Wren Kitchens for a 12,000
sq ft unit and another 20% is currently in solicitors' hands.
There have also been further lettings at Phase 1. Following
recently signed pre-lets with Card Factory, Jack Wills and Jamaica
Blue, that phase is now circa 96% let. Additionally, a 4,649 sq ft
unit has been let to Superdry (subject to planning) and a further
lease with Robert Goddard for an additional 2,352 sq ft is in
solicitors' hands. Solicitors are also instructed in connection
with a lease to Magazine Heaven for the last remaining Phase 1 unit
(2,729 sq ft).
Under the funding agreement the Group will shortly receive
initial payments totalling GBP8.6m in relation to both Phase 2 and
Phase 3.
Further receipts, the quantum of which is dependent on the terms
achieved on further lettings and the actual development costs, are
expected once each phase has reached practical completion and the
relevant leases have been completed with the tenants.
In order to secure initial payments for Phase 4, the funding
agreement requires that 75% of the space is pre-let. At present
there are no pre-lets in place; however, discussions with potential
occupiers are in progress.
Previous announcements have referred to a claim by Highways
England concerning potential cost over-runs in connection with the
highways improvements at Rushden Lakes. The Group's advisers have
now held initial meetings with Highways England and further
dialogue is planned. The Group will update further when it is
appropriate to do so.
Commenting on these developments, Tim Walton CEO of LXB Adviser
LLP said;
"It has been a long haul since the planning committee approved
the revised plans for Phases 2 and 3 in February 2017. It is very
good news that the planning position is finally confirmed, but
practical completion will be six months later than the Group
intended simply because of the planning delays suffered as a result
of the calling of the General Election in June 2017."
"It is also pleasing to have secured all these new lettings in a
tough retail and leisure market. It is testimony to Rushden Lakes'
unique appeal to be able to continue to attract premium brands such
as Jack Wills and Superdry. It is also proving to be a showcase for
emerging retailers such as Robert Goddard and Jamaica Blue which
have already opened successfully."
"The Group will continue discussions with The Crown Estate about
how it can deliver the remaining potential of this large and very
successful scheme with what is now a reduced balance sheet and a
commitment to return as much cash to shareholders as possible."
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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