Rushden Planning & Update on S of A

LXB RETAIL PROPERTIES PLC

(the "Company" or the "Group")

Confirmation of Rushden Lakes Planning Permission

and

Update on Timetable for Proposed Scheme of Arrangement

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 today updating shareholders on the status of planning permission at Rushden Lakes and the consequent impact on the timetable for the proposed scheme of arrangement.

On 4 July 2017, the Group announced that it had been advised of the Secretary of State for Communities and Local Government's decision not to call in the planning application for phases two and three at Rushden Lakes. Following that welcome news, the Group anticipated that the section 106 agreement would be signed promptly so that planning permission could be granted formally and confirmed as final six weeks later on expiry of the statutory review period.

The terms of the section 106 agreement were finalised by mid-July but it required signature by three different local authorities and, for reasons entirely outside of the Group's control, it has taken almost two months to secure the necessary consents. Consequently, East Northamptonshire Council was only in a position to issue the planning consent on 11 September 2017 and the statutory review period will not expire until 23 October 2017.

The variations to the funding agreement with The Crown Estate become unconditional 10 working days after the review period has expired (assuming no challenge has emerged during that time) so, even though all of the other elements required for that variation to become unconditional are satisfied, the earliest time when matters will be final and funds are received will now be 6 November 2017.

In April 2017, shareholders approved an amendment to the articles of association of the Company which require that final proposals for the voluntary liquidation or other reconstruction or reorganisation of the Company must be put to shareholders for consideration at an extraordinary general meeting convened for a date not later than 30 November 2017. Whilst work has continued on preparing proposals for shareholders consideration, the Board has concluded that they should not be finalised until the contract with The Crown Estate is final. As the anticipated proposals comprise a scheme of arrangement, they will then need to be considered in their final form by the Jersey Courts before they can be sent to shareholders.

This lengthy and unexpected delay in issue of the planning permission means that the Board has concluded that it is no longer appropriate to put proposals to shareholders by 30 November 2017 in compliance with the current articles of association. Whilst the delay is unfortunate, it does not impact on the Board's intentions as described in the Interim Results announcement on 5 June 2017; however, it will be necessary to seek an amendment to the articles of association to extend the long stop date. Accordingly, an Extraordinary General Meeting will be convened to consider a single proposal to amend the articles of association by replacing 30 November 2017 with 28 February 2018 as the date by which proposals must be considered by shareholders and the Board will urge all shareholders to vote in favour of that amendment. A notice to convene the Extraordinary General Meeting will be posted to shareholders shortly. 

For the avoidance of doubt, whilst this regrettable delay will inevitably increase the demands on the Investment Adviser's resources, the Board does not propose to make any adjustment to the commercial terms previously agreed with the Investment Adviser.

Commenting on these developments, Tim Walton CEO of LXB Adviser LLP said

"We are obviously pleased that the planning position has now been confirmed but this unexpected delay is more than a little frustrating. On a more positive note however, the opening of Phase 1 at Rushden Lakes at the end of July was a huge success with very positive feedback received from both tenants and visitors. That reinforces our belief that, with the addition of the later phases in due course, Rushden Lakes will become one of the UK's top out of town retail and leisure destinations."

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/Victoria Hayns/Patrick Hanrahan