Acquisition at South East Ayr

For immediate release 4 October 2011

LXB Retail Properties Plc

Acquisition at South East Ayr

LXB Retail Properties Plc ("LXB"), the real estate investment company, announces that it has acquired 118 acres at Corton, South East Ayr from John Lynch (Builders) Ltd. The purchase price is £7.075m with an additional £2m payable on signing of a Section 75 Agreement relating to the grant of a satisfactory planning permission.

The site has extensive frontage to the A77 and forms the first phase of the South East Ayr Masterplan. It will accommodate a District Retail Centre comprising a foodstore and unit shops as well as 17 acres of business space and up to 800 residential units. The site is part of a strategic land release by South Ayrshire Council to facilitate development of up to 2,700 new residential units, business space and complementary retail.

The Masterplan has received outline planning pending signing of a section 75 legal agreement with the council and LXB expects to make a detailed application for the District Centre in March 2012. The Lynch Group will work alongside LXB to deliver the planning and infrastructure on this site and other phases of the masterplan.

LXB is in advanced negotiations with a major foodstore operator about lease terms and expects to make a further announcement shortly.

Commenting on the acquisition Tim Walton, CEO of LXB Manager LLP, said:

"This acquisition represents a unique opportunity to create a foodstore anchored District Retail Centre investment as part of a major strategic development supported by South Ayrshire Council. South Ayr is an affluent area of Scotland and a foodstore in this location will be a very strong addition to LXB's portfolio of retail investments. We look forward to working closely with the Lynch Group as this important extension to the South East of Ayr moves forward"

For further information please contact:

LXB Manager LLP Tel: 020 7432 7900

Tim Walton, CEO

Brendan O'Grady, FD

Buchanan Communications Tel: 020 7466 5000

Charles Ryland /Nicola Cronk