LXB makes further progress on lettings at Rushden Lakes

Retail-focussed Jersey resident closed-ended real estate investment company LXB Retail Properties announced further progress on lettings at Rushden Lakes on Wednesday.

The AIM-traded firm said that, since the last update in the interim results for the period ended 31 March, the group had exchanged five further lettings at Rushden Lakes to Mountain Warehouse, Robert Goddard, Patisserie Valerie, Flip Out, and Zizzi.

Outdoor leisure retailer Mountain Warehouse, Robert Goddard and luxury café chain Patisserie Valerie were to take 2,731 sq ft, 2,292 sq ft and 1,561 sq ft respectively within the recently completed Phase 1.

The three lettings would mean the group was now 92% let with a further 1% in solicitors' hands.

Active discussions were ongoing with potential occupiers of all the remaining seven units in Phase 1, the board said.

Flip Out was to take 28,912 sq ft within the Phase 2 leisure building for use as a trampoline centre, and Zizzi, the Italian restaurant group with 140 restaurants across the UK & Ireland, would take 3,000 sq ft.

Those lettings meant the group was now 86% pre-let on Phase 2 with a further 7% in solicitors' hands.

The conditions included in the funding arrangements with the Crown Estate required a total of 75% of space on Phase 2 and 60% of space on Phase 3 to be pre-let, so that had now been achieved on Phase 2 and would be achieved on phase 3 if lettings now in solicitors' hands are exchanged.

In order to be unconditional, once the lettings thresholds have been met, LXB needs to have an unconditional planning permission.

As previously announced, planning for Phases 2 and 3 was unanimously approved by the Planning Committee of East Northamptonshire Council on 8 February, but the application was currently with the Secretary of State for Communities and Local Government for review.

The ministerial review was impacted by the calling of the General Election and the resultant delay, together with the statutory six week judicial review period which follows the Department for Communities and Local Government's review, meant that the group was unlikely to be fully unconditional with the Crown Estate on Phase 2 until the end of August, at the earliest.

“We are delighted with the progress made since our last update to shareholders,” said LXB CEO Tim Walton.

“These lettings are a big step towards triggering the cash receipt in respect of Phase 2 at Rushden Lakes, in advance of the proposed Scheme of Arrangement.”