Conditional Acquisition & Acquisition at Banbury

For immediate release 22 September 2011

LXB Retail Properties Plc

 Conditional Acquisition and Acquisition at Banbury

LXB Retail Properties Plc ("LXB") the real estate investment company announces that it has exchanged contracts to purchase the Prodrive site in Banbury for £17m, conditional on securing a satisfactory retail planning permission. Additional sums may become payable dependent on the amount of planning permission obtained. The site which amounts to approximately 12 acres occupies a prominent position fronting the M40 at junction 11.

LXB's purchase will facilitate Prodrive's relocation to a much larger site within Banbury. The former Hella manufacturing facility (the Hella site) which is currently vacant was recently acquired by LXB for £8.35m excluding costs. Prodrive will acquire the Hella site from LXB on completion of the latter's purchase of the existing Prodrive site.

Prodrive, the world leading motorsport and technology group, is looking to significantly grow its business over the next three years, but has run out of space at its current site by the M40 on the Wildmere Industrial Estate. The Hella site is nearly twice the size of the company's current headquarters.

David Richards, Chairman of Prodrive said:-

"We have totally outgrown our current site and this is severely hindering our ability to grow. We already have 450 staff in Banbury and we will be recruiting another 100 employees within our UK operations over the next 12 months. By 2014, I could easily see our workforce in Banbury approaching 700."

"The Hella factory is currently an empty shell and will take a significant amount of investment to bring it up to Prodrive's requirements. In order to finance this new investment, Prodrive will be seeking planning permission for a retail scheme at its existing site. Due to a lack of space and capacity, we are currently undertaking a number of projects at our facilities in both Warwickshire and Milton Keynes. However, the new Hella facility will enable us to undertake all of this under one roof," said Richards.

LXB's plan is to turn the site into a destination that will draw shoppers from far afield, as well as to increase the number of major retail brands in the town. The retail scheme would host a major store for one of the UK's most familiar brands, as well as a range of other retail stores. It is estimated that the park would create 300-500 jobs.

Tim Walton CEO of LXB Manager LLP said:

"The current Prodrive site is a gateway location with which LXB is proud to be associated. Facilitating the retention, in Banbury, of such a prestigious and highly regarded company as Prodrive; the creation of hundreds of new jobs; and expanding Banbury's retail offer are all overwhelmingly positive developments for the local area. During these difficult economic times, LXB is pleased, in partnership with Prodrive, to be coming forward with such an exciting proposal"

"This announcement, following so soon after the news of LXB's first major planning consent on the Isle of Sheppey, provides a further demonstration of the momentum building within the portfolio. I anticipate further positive announcements for shareholders in the coming months"

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