25th Sep 2014 09:02
LONDON (Alliance News) - LXB Retail Properties PLC Thursday said its annual rent roll has increased in recent months, it has a large number of other likely lettings in process, and it is talks about approaches for a number of its investment properties.
The Jersey-based closed-ended real estate investment trust said its annual rent roll now stands at GBP17.31 million, up 6.1% since June 18, after it signed pre-lets covering another 42,872 square foot of ground floor space.
It also said that it has a large number of other lettings under offer or in solicitors' hands, after uncertainties surrounding planning permission for its Banbury Gateway and Rushden Lakes developments were removed and it got a successful outcome from a Compulsory Purchase Order inquiry for its Biggleswade retail park.
It said it could return money to its shareholders if, as expected, the cash proceeds from the sale of Banbury Gateway retail development exceeds the equity required in the remainder of the trust's investment portfolio. LXB sold its Banbury Gateway investment to The Crown Estate in December last year, and expected the deal to complete this October once remaining planning and letting conditions are satisfied. It expects to get cash proceeds of more than GBP42 million.
LXB said the market for retail investments has attracted a lot of capital in recent months and tields have hardened. It said it is getting frequent approaches about buying its investments, and it said it will always consider offers seriously " if it is in the best interests of shareholders to do so".
"The group is currently in discussions in connection with a number of its investment properties but there is no certainty at this stage that transactions will be concluded satisfactorily. If and when they are, further announcements will be made," it said in an investment portfolio update.
The trust was launched in late 2009 to invest in the UK out-of-town and edge-of-town retail sector. At that time, it had not determined a time period for the life of the trust, but said shareholders would vote on whether it would continue at the annual general meeting following the fifth anniversary. A vote is expected to take place early in 2015.
LXB Retail shares were up 3.2% at 137.75 pence Thursday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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