LXB Retail Properties Plc Portfolio update (8777I)
March 26 2018 - 4:00AM
UK Regulatory
TIDMLXB
RNS Number : 8777I
LXB Retail Properties Plc
26 March 2018
26 March 2018
LXB RETAIL PROPERTIES PLC
("LXB")
Portfolio update following Court approval of scheme of
arrangement
LXB, the Jersey resident closed-ended real estate investment
company focused on edge of town and out of town retail assets today
announces the following portfolio update following the approval of
the Royal Court of Jersey to the proposed reorganisation of the LXB
Group. The Group is committed to delivering on the shareholders
mandate to realise any remaining value in the form of cash to its
shareholders as quickly as possible subject to the contracts and
obligations that it retains as it completes its last few
developments.
At Rushden Lakes discussions are ongoing with Highways England
to resolve any outstanding liabilities in relation to the highways
contract although at the current time there is no further material
progress to report.
Progress continues to be made on final lettings albeit in a very
challenging occupational market. In the Phase 2 leisure element,
contracts have been exchanged with Out of Office Coffee to take a
1,100 sq ft unit and terms are agreed and solicitors instructed on
a unit of 1,950 sq ft. In addition, terms are agreed on a further
restaurant unit of 3,500 sq ft. This leaves two final units to let
comprising a combined floorspace of 6,000 sq ft. On Phase 3, the
retail terrace, terms are agreed for the final 6,000 sq ft unit.
The build contracts for both phases remain on target with Practical
Completion of Phase 2 due in January 2019 and Practical Completion
of Phase 3 in June 2018.
On Phase 4, The Garden Square, a resolution to grant planning
consent was approved at the planning committee of East
Northamptonshire District Council on 14 March 2018. The scheme will
go back to the April planning committee to finalise the wording of
several planning conditions which were deferred by the committee in
March. The application will then need to be referred to the
Department for Communities and Local Government to confirm that
they do not wish to call the scheme in for review. The Garden
Square comprises 13 units totalling 17,500 sq ft of ground floor
space. At present three units are in solicitors hands with terms
agreed on a further two units.
Discussions are ongoing with The Crown Estate in respect of the
funding of the Garden Square phase, as it is unlikely that it can
be delivered prior to 31 March 2019 in line with the current
Development Agreement, and in relation to the release of the Phase
1 performance bond held in favour of The Crown Estate. These
discussions are expected to be concluded shortly and should lead to
the release of the bond and a further return of cash to
shareholders.
At Stafford the build for the leisure element is due to complete
in August. No further lettings have been agreed in what remains a
difficult occupational market.
At Biggleswade, terms are agreed and solicitors are instructed
with two retailers in respect of the sub-division of the final
unit. Planning approval is expected in April and it is hoped the
leases will complete by the Autumn, following the sub-division
works.
Terms are agreed and solicitors are instructed on the sale of
the remaining interests at Sutton and the Isle of Sheppey. These
sales are expected to complete in April / May 2018.
The Board still believes there is a reasonable prospect that the
previous NAV guidance of between 30p and 35p in cash over the
period to 31 March 2019 can be met; however with the continuing
difficulties in the occupier markets, in particular the Group's
exposure to the occupational leisure market, the expectation is
that it will be at the lower end of this range.
For further information please contact:
LXB Adviser LLP Tel: 020 7432 7900
Tim Walton, CEO
Brendan O'Grady, FD
J.P. Morgan Cazenove Tel: 020 7742 4000
(NOMAD)
Bronson Albery/Paul Hewlett
Buchanan Tel: 020 7466 5000
Charles Ryland/Henry
Wilson
This information is provided by RNS
The company news service from the London Stock Exchange
END
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