Planning Consent Achieved at Metz Way, Gloucester

FOR IMMEDIATE RELEASE 7 December 2011

LXB Retail Properties Plc

Planning Consent Achieved at Metz Way, Gloucester

LXB Retail Properties Plc ("LXB") the real estate investment company announces that it has obtained a resolution to grant planning permission for its Metz Way retail and mixed-use development in Gloucester. Members at Gloucester City Council have unanimously supported the plans, which comprise a 70,000 sq ft foodstore pre-let to Wm Morrison Supermarkets PLC ("Morrisons"), 140,000 sq ft of employment space, an 11,000 sq ft car showroom and 8,000 sq ft of restaurant units. The resolution to grant is subject to the usual planning and construction conditions and the signing of a S.106 agreement.

This follows LXB's announcement on 1 August 2011 that it had exchanged contracts on a subject to planning basis to acquire the Metz Way development site for £6.1million and had signed an Agreement for Lease with Wm Morrison Supermarkets PLC to take a 25 year lease for a new 70,000 sq ft foodstore on part of the site, also conditional on securing an appropriate planning consent. It is expected that construction will start on site on the Morrisons element of the scheme in spring 2012.

Metz Way comprises a vacant 18 acre employment site located close to the city centre and railway station and forms part of a wider regeneration programme known as the Railway Triangle Corridor that is being promoted by Gloucester Heritage Urban Regeneration Council ("GHURC").

Commenting on the good progress at Metz Way, Tim Walton CEO of LXB Manager LLP said:

"We are delighted with this positive news and are looking forward to delivering a new store for Morrisons in Gloucester. In terms of the employment space, we are in discussion with a number of occupiers and we are encouraged by the level of interest so far. It is anticipated that the first phase will be completed by the third quarter of 2013. Political support has been overwhelmingly positive which is undoubtedly recognition of the scheme's significant benefits which will include the creation of 1,000 jobs once completed, and the development of a key land holding which will act as the catalyst for further regeneration of land between this site and the railway station.

It is very exciting to have secured another planning consent for the group. LXB has a number of applications pending elsewhere around the UK and I expect further positive news on planning in the months ahead."

Paul James, Leader of Gloucester City Council said:

"Gloucester has waited a long time to find a workable regeneration solution to this large and prominent site, which has been an ugly scar on the face of the City for decades. LXB's proposals provide an exciting market led solution which will deliver vibrant new uses and significant new employment. It will breathe new life into this area and will play a key role in continuing the transformation of Gloucester through our successful regeneration programme".

Chris Oldershaw, Chief Executive of the Gloucester Heritage Urban Regeneration Company said:

"Having worked closely with the team at LXB Manager at the masterplanning stage, we warmly welcome the resolution of Gloucester City Council to grant planning permission for the gateway Railway Triangle scheme. LXB's proposals will deliver major new local employment opportunities in a high quality landscaped setting - this further investment confirming a continuing confidence in the City's regeneration programme which has attracted £400 million of private sector investment over the last five years"

Richard Graham, local MP said:

"It is good news that after twenty years of dithering and failed ideas we now have a jobs focused redevelopment of this part of the Railway Triangle. Now that manufacturers can see that the regeneration of the Triangle is going to happen, I hope they come forward to take advantage of industrial space at the heart of our city."

For further information please contact:

LXB Manager LLP Tel: 020 7432 7900

Tim Walton, CEO

Brendan O'Grady, FD

Buchanan Tel: 020 7466 5000

Charles Ryland /Nicola Cronk