11th Dec 2015 10:20
LONDON (Alliance News) - LXB Retail Properties PLC on Friday said it expects to put forward proposals early in the New Year which will enable it to detail the timing and amount of cash returns.
LXB plans to propose the orderly realisation of its investments at its upcoming annual meeting of shareholders, with capital to be returned to shareholders by March 2017. At that point, it may be necessary to appoint a liquidator to complete the formalities of a solvent winding up.
The Jersey resident closed-ended real estate investment company said it expects to begin a GBP16.0 million share buyback programme in the next few weeks.
"The board remains committed to the principle that larger cash returns should be made under the return of capital mechanism used for the cash return in May 2015 but that smaller amounts should be returned as soon as practicable using its share buyback authority," Chairman Phil Wrigley said in a statement.
Wrigley said there will be arrangements for investment management fees and an incentive plan.
"The board needs to ensure that the investment manager is committed to realising the value of the company's investments and rewarded accordingly," the chairman said.
The group's results to September 30 showed an uplift in net asset value per share of 10.4% over the year, after taking into account the GBP82.6 million return of cash to shareholders in June. "We remain well placed to deliver good growth in net asset value in the short term as the outstanding issues in relation to the crystallisation of value in the group's investments are resolved," Wrigley said.
Shares in LXB were up 0.3% at 94.25 pence on Friday morning.
By Samuel Agini; [email protected]; @samuelagini
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