Update on Investment Portfolio

LXB Retail Properties Plc

Update on Investment Portfolio

("the Company" or "the Group")

Prior to release of the interim results for the six months to 31 March 2014 in the first half of June, the Company has reviewed the status of each of its investments and is pleased to provide the following update on material developments since the most recent update provided to shareholders.

Ayr

The planning application for 750 houses, a primary school, a neighbourhood centre, a business park and a 101,000 sq ft Sainsbury's was submitted in February. The Group does not, as yet, know when it will be considered by the planning committee.

 Banbury Gateway

The request for a judicial review of the planning permission for the proposed Banbury Gateway retail investment was dismissed by the Court of Appeal in March 2014. The Company understands that this matter is now at an end.

On 27 March 2014, the Group secured a resolution to grant planning permission for a revision to the scheme layout to accommodate the letting to Primark which was announced on 29 January this year. The Group expects to sign the Section 106 Agreement shortly following which the planning permission will be confirmed and a new statutory review period will commence.

There are ongoing discussions with a number of additional potential tenants and the Group will update shareholders in due course.

Gloucester

Contracts have been exchanged for the sale of a three acre parcel of land for £1.25m conditional on planning permission being obtained for a commercial vehicle dealership. The planning application has been submitted and a decision is expected in summer 2014.

The Group is also engaged in discussions regarding the sale of the remainder of the Group's interests at Gloucester, having received an approach from a second party.

Greenwich

The planning application for a new IKEA store on the site of current Sainsbury's at Greenwich Peninsula was heard by the Planning Committee in March 2014. The committee resolved to grant planning permission on signing of a Section 106 Agreement.

The Group is aware that a request has been made for the existing store to be listed as being of special architectural and historic interest which would, of course, prevent the redevelopment of the new IKEA store. The Group continues to monitor this development.

Rushden Lakes

The Group announced previously that the Secretary of State's decision following the Planning Inquiry for this proposed major retail and leisure investment had been delayed beyond the original target date of 13 February 2014. Subsequently, all parties were given the opportunity to make further representations because revised planning guidance had been issued since the inquiry was held. The Group provided its comments by the deadline of 31 March 2014 and hopes that a decision will be issued shortly.

Sheppey

The construction of Phase 2 is progressing well and remains on schedule for Practical Completion in October 2014. There has been good progress on lettings as well with a pre-let signed with Iceland for a 7,284 sq ft unit and a pre-let to another major retailer for a 7,500 sq ft store expected to exchange this week.

Stafford

On 2 April 2014 the Group entered into a pre-let agreement with H&M for a 9,250 sq ft unit at the Riverside investment. The Group is in advanced discussions with a number of other potential tenants and expects to announce further pre-lets shortly.

The Group arranged a public consultation in January 2014 regarding its proposal to incorporate a six screen cinema and five restaurant units into the Riverside investment. The response was very favourable and the Group has been progressing discussions with a Cinema operator to enable a pre-letting to be confirmed and an application for planning permission to be finalised. There has been very good demand from potential occupiers of the restaurant units and several offers have been received.

At Kingsmead, a pre-let has been agreed with Just For Pets for a 4,700 sq ft unit and discussions are at a very advanced stage for a pre-let of the adjacent 10,000 sq ft unit. Once that pre-let is signed, the Kingsmead investment will be 100% pre-let.

The construction of these two investments will offer a major boost to Stafford town centre and the Group has held very constructive discussions with the local authorities in an endeavour to bring forward the time when they are open for business. The resulting agreements are currently being documented by lawyers and a start on site is expected soon. The existing multi-storey car park has already been demolished and construction of the replacement building will start shortly in conjunction with construction of the Morrisons foodstore at Kingsmead.

Sutton

Following the expiry of all statutory review periods, the planning permission for the Group's major retail investment in this six acre town centre can no longer be challenged and initial demolition and site clearance works will commence this month.

The Group remains on track to secure vacant possession of the entire site by September 2014 and expects to complete the 123,000 sq ft Sainsbury's by the first quarter of 2016.

The scheme incorporates 186 residential units and the Group has received approaches from national house builders about acquiring the residential component. Discussions are continuing.

Truro

The Group anticipates that its application for consent to a substantial mixed use development including a 78,100 sq ft ASDA and 435 houses will be considered by the planning committee on 8 May 2014.

For further information please contact:

LXB Adviser LLP Tel: 020 7432 7900

Tim Walton, CEO Brendan O'Grady, FD

Buchanan Tel: 020 7466 5000

Charles Ryland/Sophie McNulty/Helen Greenwood

www.buchanan.uk.com