Posting Of Shareholder Circular

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, TO US PERSONS OR INTO THE UNITED STATES, OR INTO OR FROM CANADA, JAPAN, SOUTH AFRICA OR AUSTRALIA OR ANY JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL

For immediate release 1 June 2011

LXB RETAIL PROPERTIES PLC

("LXB Retail" or the "Company")

POSTING OF SHAREHOLDER CIRCULAR

The Company has posted a circular to its shareholders containing details of the Placing (the "Circular").The Circular contains a copy of the notice convening an Extraordinary General Meeting of shareholders at Ogier House, The Esplanade, St Helier, Jersey JE4 9WG, at 11:00 a.m. on 13 June 2011, at which approval for the Placing will be sought.

The Circular can also be accessed from the Company's website at:

http://www.lxbretailproperties.com/index.php/lxb_retail_investor_relations 

Capitalised terms used, but not defined, in this announcement have the same meanings as given to them in the Circular unless the context requires otherwise.

Enquiries

LXB Manager LLP Tel: 020 7432 7900

Tim Walton, CEO

Brendan O'Grady, FD

J.P. Morgan Cazenove (NOMAD, Joint Broker and Joint Bookrunner) Tel: 020 7588 2828

Robert Fowlds / Bronson Albery / Barry Meyers

Oriel Securities (Joint Broker and Joint Bookrunner) Tel: 020 7710 7600

Mark Young / Joe Winkley / Neil Langford

Buchanan Communications Tel: 020 7466 5000

Charles Ryland / Nicola Cronk

Important Information

This Announcement is not for publication, release or distribution, directly or indirectly, in whole or in part, to US Persons or in or into the United States (including its territories and possessions, any State of the United States and the District of Columbia), Australia, Canada, South Africa or Japan or any jurisdiction into which the same would be unlawful.

This Announcement is for information purposes only and does not constitute, or form part of, any offer to sell or issue or any solicitation of an offer to purchase or subscribe for Placing Shares or other securities in the capital of the Company in Australia, Canada, South Africa or Japan or in any jurisdiction in which such offer or solicitation is or may be unlawful and should not be relied upon in connection with any decision to acquire the Placing Shares or other securities in the capital of the Company. No public offer of securities of the Company is being made in the United Kingdom or elsewhere.

This Announcement is not an offer of securities for sale in or into the United States. The Placing Shares have not been and will not be registered under the Securities Act or under the laws of any State of the United States and may not be offered or sold in or into the United States or to, or for the account or benefit of, US persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. No public offering of securities will be made in the United States. The Placing Shares are being offered and sold outside the United States in reliance of Regulation S of the Securities Act, and within the United States pursuant to an exemption from the registration requirements of the Securities Act.

The Company has not been, and will not be, registered under the Investment Company Act of 1940 as amended (the "Investment Company Act"), in reliance of Section 3(c)(7) thereof, and investors will not be entitled to the benefits of that Act. Accordingly, Placing Shares are only being offered to US Persons that are qualified institutional buyers (as defined in Rule 144A under the Securities Act), and are also qualified purchasers (as defined in Section 2(a)(51) of the Investment Company Act).

This announcement has been issued by and is the sole responsibility of the Company. No representation or warranty, express or implied, is or will be made as to, or in relation to, the accuracy and completeness of this Announcement and apart from the responsibilities and liabilities, if any, which may be imposed on each of J.P. Morgan Cazenove or Oriel Securities by FSMA or the regulatory regime established thereunder, no responsibility or liability is or will be accepted by either of J.P. Morgan Cazenove or Oriel Securities or by any of their affiliates or agents as to, or in relation to, the accuracy or completeness of this Announcement or any other written or oral information made available to or publicly available to any interested party or its advisers, and (save as referred to above) any liability therefor is expressly disclaimed.

Prospective investors should note that, except with the express consent of the Company given in respect of an investment in the Placing, the Placing Shares may not be acquired by investors using assets of (i) an employee benefit plan that is subject to the fiduciary responsibility or prohibited transaction provisions of Title I of the ERISA, (including, as applicable, assets of an insurance company general account) or a plan that is subject to the prohibited transaction provisions of Section 4975 of the Code, (including an individual retirement account), (ii) an entity whose underlying assets include "plan assets" by reason of a plan's investment in the entity, (iii) a "benefit plan investor" as otherwise defined in Section 3(42) of the ERISA or regulations promulgated by the US Department of Labor or (iv) a plan, individual retirement account or other arrangement that is subject to any Similar Law. Violation of these restrictions could result in mandatory transfer of Shares.

In the United Kingdom, this Announcement is only addressed to and directed at persons (i) who have professional experience in matters relating to investments falling within Article 19(5) (investment professionals) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the "Order") or (ii) falling within Article 49(2)(a) to (d) (high net worth companies, incorporated associations, etc.) of the Order; and (c) other persons to whom it may otherwise lawfully be communicated (all such persons in (i) and (ii) together being referred to as "relevant persons"). The Placing Shares are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such shares will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this Announcement or any of its contents.

In any European Economic Area ("EEA") Member State that has implemented Directive 2003/71/EC (together with any applicable implementing measures in any Member State, the "Prospectus Directive"), this communication is only addressed to and is only directed at: (a) qualified investors in that Member State within the meaning of Article 2(1)(e) of the Prospectus Directive; and (b) other persons who are permitted to purchase the Placing Shares pursuant to an exemption under the Prospectus Directive and other applicable regulations. This Announcement has been prepared on the basis that all offers of Placing Shares will be made pursuant to an exemption under the Prospectus Directive, as implemented in member states of the EEA, from the requirement to produce a prospectus for offers of Placing Shares. Accordingly, any person making or intending to make any offer within the EEA of the Placing Shares which are the subject of the Admission contemplated in this Announcement should only do so in circumstances in which no obligation arises for the Company, J.P. Morgan Cazenove or Oriel Securities to produce a prospectus for such offer. None of the Company, J.P. Morgan Cazenove or Oriel Securities has authorised, nor do they authorise, the making of any offer of Placing Shares through any financial intermediary, other than offers made by J.P. Morgan Cazenove or Oriel Securities which constitute the final placement of Placing Shares contemplated in this Announcement.

The Company is established in Jersey as an unregulated exchange-traded fund for the purposes of the Collective Investment Funds (Unregulated Funds) (Jersey) Order 2008. The Company is not regulated in Jersey. The Jersey Financial Services Commission has neither evaluated nor approved the scheme or arrangement of the Company, parties involved in the promotion, management or administration of the Company or this Announcement. The Jersey Financial Services Commission has no ongoing responsibility to monitor the performance of the Company, to supervise the management of the Company or to protect the interests of investors in the Company.

The distribution of this Announcement and the offering of the Placing Shares in certain jurisdictions may be restricted by law. The Placing Shares may not (unless an exemption under the relevant securities laws is applicable) be offered, sold, resold or delivered, directly or indirectly, in or into the Australia, Canada, South Africa or Japan or any other jurisdiction outside the United Kingdom. No action has been taken by the Company or the Bookrunners or any of their respective affiliates that would permit an offering of such shares or possession or distribution of this Announcement or any other offering or publicity material relating to such shares in any jurisdiction where action for that purpose is required. Persons into whose possession this Announcement comes are required by the Company and the Bookrunners to inform themselves about, and to observe, any such restrictions.

Persons (including, without limitation, nominees and trustees) who have a contractual or other legal obligation to forward a copy of this Announcement should seek appropriate advice before taking any action.

The statements contained in this Announcement that are not historical facts are "forward-looking" statements, which are based on the Company's current intentions, beliefs and expectations about, among other things, the Company's results of operations, financial condition, prospects, growth, strategies and the industry in which the Company operates. Forward-looking statements are typically identified by the use of forward-looking terminology such as "believes", "expects", "may", "will", "could", "should", "intends", "estimates", "plans", "assumes" or "anticipates" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Such risks and uncertainties could cause actual results to vary materially from the future results indicated, expressed or implied in such forward-looking statements. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements. The forward-looking statements contained in this Announcement speak only as of the date of this Announcement and the Company undertakes no duty to update any of them publicly in light of new information or future events, except to the extent required by applicable law.

Any indication in this Announcement of the price at which shares have been bought or sold in the past cannot be relied upon as a guide to future performance. No statement in this Announcement is intended to be a profit forecast and no statement in this Announcement should be interpreted to mean that earnings per share of the Company for the current or future financial years would necessarily match or exceed the historical published earnings per share of the Company. The price of shares and the income from them may go down as well as up and investors may not get back the full amount invested on disposal of the shares.

Neither the content of the Company's website (or any other website) nor the content of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this Announcement.

J.P. Morgan Cazenove, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting as nominated adviser, joint broker and joint bookrunner to the Company in connection with the matters described herein. J.P. Morgan Cazenove's responsibilities as the Company's nominated adviser under the AIM Rules are owed solely to the London Stock Exchange and are not owed to the Company or to any director or to any other person in respect of his decision to acquire shares in the Company in reliance on is document. J.P. Morgan Cazenove is acting for the Company in relation to the Placing and the AIM Admission and no-one else and will not be responsible to anyone other than the Company for providing the protections afforded to its clients, nor for providing advice in relation to the Placing and the AIM Admission, the contents of this Announcement or any transaction or arrangement referred to herein.

Oriel Securities, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting as joint broker and joint bookrunner to the Company in connection with the matters described herein. Oriel Securities is acting for the Company in relation to the Placing and no-one else and will not be responsible to anyone other than the Company for providing the protections afforded to its clients, nor for providing advice in relation to the Placing, the contents of this Announcement or any transaction or arrangement referred to herein.

Ogier Corporate Finance Limited, which is a member of the CISX, is the sponsor to the listing on the CISX and is acting exclusively for the Company in relation to the CISX Admission and no-one else, and will not be responsible to anyone other than the Company for providing the protections afforded to customers of Ogier Corporate Finance Limited, nor for providing advice in relation to the CISX Admission to the CISX, the contents of this Announcement or any transaction or arrangement referred to herein.