SHARE BUYBACK PROGRAMME

LXB RETAIL PROPERTIES PLC

(the "Company" or the "Group")

SHARE BUYBACK PROGRAMME

and

Update on Portfolio

Following the announcement on 17 December 2013 of a share buyback programme (the "Buyback Programme") that would in the first instance return up to £10m to shareholders, the Company announced on 18 December 2013 the purchase for cancellation of 8,100,000 of its own ordinary shares ("Shares"). Subsequent to this, the Board has a remaining general authority for the purchase of a further 24,279,947 Shares.

The announcement on 17 December 2013 reported that the sale of the Sainsbury's/M&S investments at Greenwich (the "Maritime transaction"), which was announced on 17 June 2013, was expected to be unconditional and complete by 20 December 2013, at which point it was expected that the maximum aggregate amount to be returned to shareholders pursuant to the Buyback Programme would be increased in order to return a substantial proportion of the Maritime sale proceeds to shareholders.

The Board is pleased to announce that, as expected, the Maritime transaction completed on 20 December 2013 and that the Group has received sale proceeds of £58m. The Board continues to consider that the Buyback Programme is the most cost efficient and appropriate way to return excess cash to shareholders. Therefore the Board has decided to increase the amount that will be returned to shareholders pursuant to the Buyback Programme in order to return a substantial proportion of the Maritime sale proceeds.

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 17 December 2013 and considers that it has provided a comprehensive overview of the status of its investment projects and of when shareholders may expect to see progress reflected in the net asset value per share. The only additional developments within the portfolio since that summary was issued are as follows:

Banbury

The announcement on 17 December 2013 reported that the Group was in discussions about potential realisations of certain of its investments and that it expected to exchange contracts for a conditional disposal of one investment imminently. On 19 December 2013 that contract, for a conditional sale of the majority of the Group's investments at Banbury, was exchanged.

The Crown Estate has agreed to acquire the majority of the Group's investment in Banbury Gateway for an estimated purchase price of £42.35 million, conditional on fulfilment of certain planning and letting related matters. These are all in hand and expected to be satisfied by autumn 2014, at which point the purchase will be unconditional and the purchase consideration will be satisfied in cash. In addition, The Crown Estate will fund the development costs with the Company retaining responsibility for overseeing the development and for letting additional retail units beyond the pre-lets already exchanged with M&S and Next. This agreement reflects an underlying yield of 5.15% for the retail elements of the scheme and an anticipated net development value of c £78 million.

The Group announced on 4 December 2013 that two further pre-lets at Banbury Gateway were in solicitors' hands and exchange of contracts on both of these is imminent. The recent positive decision on the judicial review of the Group's planning consent cleared a significant obstacle to the delivery of this high quality investment. The removal of uncertainty is adding momentum to already strong lettings interest and discussions with a number of other potential occupiers are ongoing. On 18 December 2013 the Group became aware that one of the original judicial review applicants has initiated another judicial review action, citing the same arguments which were comprehensively dismissed in the court decision handed down on 17 December 2013. The Group's legal advice is that the claim is entirely without merit.

Sutton

On 18 December 2013, members at the London Borough of Sutton resolved to grant planning consent for the Group's comprehensive redevelopment plans for its six acre town centre site which comprise a 123,000 sq ft foodstore (pre-let to Sainsbury's), 27,500 sq ft of further retail space and 186 residential units. The resolution to grant is subject to a number of the usual planning and construction conditions, the signing of a S106 agreement (the terms of which are well advanced) and formal, strategic review by the Mayor of London's office of the Council's resolution to grant planning consent under his statutory planning powers for London.

Arrangements to complete the site assembly are well advanced and the Group anticipates that it will commence demolition and initial site works by Easter 2014.

For further information please contact:

LXB Adviser LLP Tel: 020 7432 7900Tim Walton, CEOBrendan O'Grady, FD

Buchanan Tel: 020 7466 5000Charles Ryland/Sophie McNulty/Helen Greenwoodwww.buchanan.uk.com