LXB Retail sells Greenwich B&Q investment

Jersey-based real estate investment firm LXB Retail Properties said it had exchanged contracts for the sale of its investment at B&Q Greenwich to an unnamed UK investor for £43.3m, adding that it planned to return around £20m to shareholders.

The property is currently let to B&Q Plc until 23 June 2024 at a current rental of £2.24m a year.

“The sale is conditional on confirmation of the freeholder's consent which is anticipated imminently. Completion is expected to occur on 12 September 2016 or, if later, five working days after grant of the freeholder's consent,” LXB said.

The proceeds, net of a £0.19m retention and bank debt of £23m, will be available to be returned to shareholders and further details on the board's proposals will follow when the transaction has completed, the company said.

“The transaction reflects a net yield of 4.85% for the group's long leasehold investment and will result in a premium of approximately £1m over the current valuation,” LXB said.

It also confirmed the disposal of its Kingsmead investment at Stafford, announced on 18 August 2016 completed, as expected, on 24 August 2016 realising £4.2m after repayment of £21.8m bank debt relating to Kingsmead.

Tim Walton, chief executive of LXB Adviser LLP said: “The sale of the B&Q investment is excellent news for the shareholders of LXB Retail Properties Plc. It is further testament to the quality of the group's investments that LXB has been able to achieve this sale in a cautious post-Brexit investment market.”

“That sale and completion of the Kingsmead transaction are further significant steps in effecting an orderly disposal of the group's remaining assets in accordance with the shareholders' vote in February of this year.”