LXB Retail Properties Plc Acquisition (6294J)
09 Agosto 2012 - 8:00AM
UK Regulatory
TIDMLXB
RNS Number : 6294J
LXB Retail Properties Plc
09 August 2012
For immediate release 9 August 2012
LXB Retail Properties Plc
Acquisition of Land Interests in Truro
LXB Retail Properties Plc ('the Company'), the real estate
investment company, announces that it has acquired land interests
in Truro, Cornwall from Regenco Properties LLP ('Regenco') for
GBP2m cash plus costs. The acquisition comprises an option to
acquire 49 acres at Willow Green Farm, Threemilestone ('Willow
Green') to the west of the city and the purchase of two parcels of
land known as Higher Newham Farm ('Higher Newham') collectively
amounting to 100 acres on the south side of Truro.
Willow Green occupies a key location in an area of Truro which
is identified in Cornwall Council's Development Brief as having the
potential for development to include a foodstore and other retail
facilities associated with a district centre, a substantial number
of new homes and the infrastructure associated with development on
that scale. In September 2011 the LXB Retail Properties Plc group
(the "Group") entered into an option agreement with the owners of
20 acres of land adjacent to the land covered by this purchase, and
it is anticipated that the enlarged site at Willow Green will
emerge as the preferred location for a foodstore led retail
district centre. The Company is in advanced discussions with a
leading foodstore group regarding an Agreement for Lease for a
store in excess of 70,000 sq ft. As with the Group's site at Ayr,
the proposed retail development at Willow Green also offers the
potential to create incremental shareholder value through promotion
of the adjacent land for residential use and these opportunities
will be explored as the planning debate progresses. It is currently
expected that a comprehensive planning application will be
submitted in the fourth quarter of 2012.
The land at Higher Newham is currently farmed under short term
tenancy arrangements and the site also contains 3 private
residential dwellings. The development potential for this site is
expected to take longer to crystallise, but the houses and the
arable land offer good downside protection in the short term.
The aggregate acquisition price for these land interests is
significantly below the threshold at which an announcement is
required to be made by the Company to the market under the AIM
Rules of London Stock Exchange plc. However, as the acquisition has
been made from Regenco, an entity in which a number of the current
and certain past members of LXB Manager LLP ('the Investment
Manager') held an aggregate 11% (GBP2m) equity interest (and is
therefore a small related party transaction for the Company), the
Board has determined to make this announcement in the interests of
full and transparent communication with all of its
shareholders.
The relationship of the Investment Manager and its members was
summarised in the Admission Document published by the Company at
the time of its IPO in 2009[1]. Under the terms of the acquisition,
Regenco has used the GBP2m proceeds to repay the investment of the
current and certain past members of the Investment Manager at par,
following which the Investment Manager (and affiliated entities)
will have no interest in Regenco; its sole business activity is now
the provision of services to the Company. Under the terms of its
contractual agreements with the Company, the Investment Manager
(and its affiliates) may not undertake any similar roles for any
other entity without the prior consent of the Group[2].
The Board has consulted fully with its advisers to ensure that
appropriate and rigorous corporate governance principles have been
followed throughout the whole process leading up to the
acquisition. This included the Board commissioning Jones Lang
LaSalle to undertake an independent valuation of the land interests
to provide assurance to the Board that the acquisition price
represented fair market value. In addition, Alastair Irvine, one of
the members of the Board, holds a minority interest in Regenco.
Although he was neither consulted about nor involved in Regenco's
decision to sell the land interests, Mr Irvine declared his
interest to the Board and took no part in its decision to make the
acquisition.
Commenting on the acquisition, Phil Wrigley, Chairman, said:
'I am very pleased to announce the acquisition of these sites.
Willow Green offers the potential for the Group to make a very
significant addition to our growing portfolio of high quality
retail investments. The Board has taken great care to be satisfied
(i) that the investment potential of Willow Green justifies the
aggregate acquisition price of both assets and (ii) that the
current use value of the arable land and existing dwellings at
Higher Newham offers a robust fallback position should the
investment prospects for that land prove too challenging.'
'In addition to being satisfied that the acquisition offers an
attractive investment opportunity for the Company, the Board has
given great focus to the related party aspects of the transaction
to ensure that, in all respects, this is an appropriate deal and
one which is in the best interests of all shareholders.'
Tim Walton, CEO of LXB Manager LLP, said:
'We are delighted to secure this opportunity for the Group. The
city of Truro will grow significantly over the coming years and is
already acknowledged to have insufficient retail provision for its
current population. This acquisition allows us to make a
significant addition to the Company's growing portfolio of
foodstore investment opportunities. Furthermore, Truro has less
than a 12 month housing land supply and Cornwall Council has
resolved to address this deficiency by encouraging the release of
land to create a 5 year housing land supply in order to meet the
shortage of affordable housing. We have been encouraged by the
Council's recent endorsement of the Development Brief for the area
including Willow Green and the prospect for securing planning
permission for a mixed retail and residential led development at
this site.'
For further information please contact:
LXB Manager LLP Tel: 020 7432 7900
Tim Walton, CEO
Brendan O'Grady, FD
Buchanan Tel: 020 7466 5000
Charles Ryland/Nicola Cronk/Clare Akhurst
[1] See page 30 in Part 2 of the Admission Document and
references to LXB Fund 4 (of which Regenco is a part) and page 85
in Part 8 under the heading 'Exclusivity'
[2] See Page 85 in Part 8 of the Admission Document under the
heading 'Exclusivity'
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQUWUNRURAWRAR
Grafico Azioni Lxb Retail Properties (LSE:LXB)
Storico
Da Set 2024 a Ott 2024
Grafico Azioni Lxb Retail Properties (LSE:LXB)
Storico
Da Ott 2023 a Ott 2024