Contracts completion & new investment at Greenwich

LXB RETAIL PROPERTIES PLC

(the "Company" or the "Group")

Completion of contracts with IKEA and new investment at Greenwich

LXB Retail Properties Plc, the Jersey resident closed-ended real estate investment company focused on edge of town and out of town retail assets, is pleased to announce that a number of contracts have been concluded which will significantly reshape the Group's investments at Greenwich.

As part of the arrangements made in May 2011 for the pre-let of Sainsbury's major new store at Charlton Riverside Place, the Group agreed to buy the retailer's existing store at Greenwich Peninsula for £16m plus costs when the new premises were open for trading and the old store had been stripped out. In December 2013, the Group reached agreement with IKEA whereby, subject to satisfaction of a number of conditions, IKEA would acquire the former Sainsbury's and the adjoining former Comet store. The conditionality included IKEA obtaining planning permission for a new 350,000 sq ft store and the acquisition by the Group of further adjacent land interests. These conditions have now all now been satisfied and the arrangements with IKEA are unconditional. The formalities of concluding the contracts are complex and involve a two stage completion and a number of parties. The first phase of the contract with IKEA completed on 11 September 2015 and the second stage, IKEA's acquisition of the former Sainsbury's, is expected to complete on 18 September 2015.

IKEA has historically proven to be a massive driver of customer footfall and its new store, together with the recently opened Sainsbury's and M&S stores at Charlton Riverside Place, will be a major boost to the area's status as an important shopping destination. The Royal Borough of Greenwich sees these new retail investments as a key component in delivering its Charlton Riverside Area Action Plan to regenerate this part of South East London. As well as new retail space, the plan includes development of 6,000 new residential units, transforming the area into an attractive and vibrant mixed use urban quarter. This regeneration project, together with the recently announced proposals for 15,000 new homes on the Greenwich Peninsula will provide a strong local customer base for retailers and bodes well for the Group's Brocklebank Retail Park investment which is located in the heart of the Charlton Riverside Area Action Plan area.

The anticipated growth in that part of South East London - which is benefitting from good transport links with both Canary Wharf and Central London - offers potential for excellent investment growth and the Group is pleased to announce a major new addition to its Greenwich portfolio. Contracts have been exchanged with Royal London Asset Management to acquire their 982 year lease of the site which sits directly alongside the site of the proposed new IKEA and is currently occupied by a 93,500 sq ft B&Q store. The purchase consideration is £38m representing a 5.6% yield with 9 years remaining on the B&Q lease. With its prime location, adjacent to a cinema, the proposed IKEA and the adjacent residential development, the Group considers that this investment offers a number of opportunities for capital growth in the medium term as well as a good running yield. The investment is part funded by a three year £23m investment loan facility provided by Royal Bank of Scotland.

Taken together, the transactions involving the IKEA and the former Sainsbury's store will, net of the legal costs and SDLT associated with the B&Q purchase, generate surplus Net Asset Value of £5.7m (3.1p per share) and cash of £6m for the Group.

Commenting on the conclusion of these contracts Tim Walton, CEO of LXB Adviser LLP, said:-

"I am delighted that the Group is able to announce these transactions. IKEA's decision to come to the Greenwich Peninsula and the anticipated impact on customer footfall is very good news for other retail investments in the area, including Brocklebank Retail Park. IKEA has invested £40m just to acquire the site and we believe that it will be rapidly developing its new store. The B&Q directly alongside the new IKEA occupies a truly prime location in South East London and offers potential for significant capital growth in the medium term, as well as an attractive yield in the intervening period. These transactions deliver exceptional value for investors."

For further information please contact:

LXB Adviser LLP Tel: 020 7432 7900

Tim Walton, CEOBrendan O'Grady, FD

J.P. Morgan Cazenove (NOMAD) Tel: 020 7742 4000

Bronson Albery / Paul Hewlett

Buchanan Tel: 020 7466 5000

Charles Ryland/ Sophie McNulty/ Vicky Watkins