Portfolio Update and Share Buyback Programme

LXB RETAIL PROPERTIES PLC

(the "Company" or the "Group")

Portfolio Update and Share Buyback Programme

LXB Retail Properties Plc, the Jersey resident closed-ended real estate investment company focused on edge of town and out of town retail assets, announced on 8 December 2015 the exchange of contracts for the sale of its investment at Brocklebank, Greenwich to The Charities Property Fund, managed by Savills Investment Management (the 'Brocklebank Transaction'). The sale was conditional on fulfillment of certain construction and letting related matters which have now all been satisfactorily concluded and the transaction completed on 23 December 2015 when initial cash proceeds of £22.8m were received.

The Chairman's statement which accompanied the results announcement on 11 December 2015 indicated that the Board of directors of the Company (the 'Board') anticipated that the Company would consider returning up to £16m to shareholders through a purchase of its own ordinary shares ('Shares'). Following completion of the Brocklebank Transaction and a further review of the Group's cash requirements, the Board has concluded that up to £18m can be returned to shareholders and that a purchase of its own Shares is the most appropriate and cost effective way of achieving this.

Accordingly, the Board today announces its intention to commence a share buyback programme (the 'Buyback Programme') through its broker, Stifel Nicolaus Europe Limited, to act on its discretion to purchase Shares on the Company's behalf subject to certain pre-set parameters, up to an aggregate cost of £18m.

Any Share purchases will be made in accordance with the Company's general authority to buy back Shares, as approved by shareholders at the Company's general meeting on 27 May 2015, the AIM Rules for Companies (the 'AIM Rules') and the rules of the Channel Islands Securities Exchange Authority (the 'CISE Rules').

The maximum price which may be paid for each Share is an amount equal to 105% of the average middle market closing price for the five business days immediately preceding the date of the purchase.

In addition, given the limited liquidity in the Shares, it is possible that, on a given day, the Company may buy back more than 50 per cent of the average daily volume of the preceding 20 business days.

Any Shares purchased pursuant to the Buyback Programme will be cancelled and the purchase will be notified to a Regulatory Information Service in accordance with the AIM Rules and the CISE Rules.

None of the directors or any member of the Investment Manager's team intend to dispose of any of their Shares as part of the Buyback Programme.

The Board has reviewed the status of each of the Group's investment projects for any material developments since the summary provided to shareholders on 11 December 2015. Generally, the Board considers that it has provided a comprehensive overview of the status of its investment projects. In terms of particular investments, for completeness, this announcement provides an update on any developments since 11 December 2015

Ayr

On 16 December 2015, as anticipated, the Council's Regulatory Panel (Planning Committee) granted delegated powers to officers to approve the detailed applications for the initial infrastructure works and for the foodstore, which is pre-let to Sainsbury's, subject to conditions and a legal agreement.

Gloucester

The previously announced sale of surplus land has completed, generating initial cash proceeds of approximately £0.75m.

Greenwich

Under the terms of the Brocklebank Transaction, the Group is responsible for letting the final unit. Terms have now been agreed with a potential tenant and the Group expects to instruct solicitors imminently so that a formal pre-let agreement can be concluded.

Rushden

Solicitors have been appointed in connection with another four pre-lettings at Rushden; accordingly the Group now has 17 pre-lettings in solicitors' hands.

Stafford

The Group has exchanged contracts with Prezzo Limited (trading as 'Prezzo') to let a 3,000 sq ft unit within the leisure element of the Stafford Riverside scheme. The letting is subject to certain conditions all of which are expected to be satisfied in the first quarter of 2016. Prezzo will join Chiquitos and Nandos, both of whom have already exchanged agreements for lease, to provide an attractive restaurant offer within the leisure element of the scheme.

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

Stifel Tel: 0207 710 7452

Roger Clarke

Buchanan Tel: 020 7466 5000

Charles Ryland/Vicky Watkins