Acquisition

11 July 2011

LXB Retail Properties Plc (LXB Retail)

Acquisition of Retail Development Sites in Stafford

LXB Retail announces that it has acquired two long leasehold interests in two adjoining sites from two, separate, private owners for a total consideration of £10.1m including acquisition costs. The acquisition was funded from existing cash resources.

The sites which are on the edge of Stafford town centre in close proximity to the town's existing retail facilities are adjacent, separated by the River Sow, and located on the south-eastern fringe of the town centre with direct access to Stafford's ring road. The main property is a cleared site of about 4.75 acres which currently houses temporary car parking. The second, which comprises about 1.85 acres, lies on the southern side of the river and contains a disused former foodstore with a vacant multi-storey car park.

LXB Retail has been working with Stafford Borough Council to progress the development of an edge of centre retail scheme comprising about 220,000 sq ft of retail accommodation and in excess of 1,200 car parking spaces. Outline terms have been conditionally agreed with a major retailer to lease the 'anchor' store of circa 65,000 sq ft and LXB Retail intends to submit a planning application for the development later this year.

In addition, LXB Retail is in advanced discussions with both Stafford Borough Council and Staffordshire County Council in relation to the purchase of another site on the edge of the town centre for a sizeable foodstore-led development, which LXB envisages being brought forward with a similar timescale for planning application submission.

Tim Walton Chief Executive of LXB Manager LLP, said;

 "This is another exciting retail development opportunity for LXB Retail which was recognised as one of our 'pipeline' opportunities with a well located site, identifiable tenant demand and pro-active local authorities and typifies the areas in which we seek to do business. We look forward to helping to enhance the retail facilities of Stafford town centre with a high quality development".

Mike Heenan, Council Leader of Stafford Borough Council commented;

 "This is tremendous news for Stafford Borough and the result of much hard work that we have undertaken to attract new business and development to our area. The boost to our local economy will be far more than the monetary value of these schemes and it demonstrates that Stafford is a place where companies want to invest."

County Council Leader, Philip Atkins said;

 "We are committed to investing in Stafford which is demonstrated through the development of our new County Council HQ in Tipping Street."

"This announcement is great news for Stafford and a brilliant example of the two Councils working together and using their assets for the benefit of our community. LXB Retail is a well funded company which we believe will deliver lots of exciting business opportunities for the town and give our residents the retail facilities they deserve."

Enquiries

LXB Manager LLP Tel: 020 7432 7900

Tim Walton, CEO

Brendan O'Grady, FD

Buchanan Communications Tel: 020 7466 5000

Charles Ryland / Nicola Cronk

Ends