LXB Retail Properties has reported that on 25 August 2016 it exchanged contracts for the sale of its investment at B&Q, Greenwich to a private investor based in the UK. The property is currently let to B&Q Plc until 23 June 2024 at a current rental of GBP2,244,000 per annum.
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, 5 working days after grant of the freeholder’s consent. On completion, cash proceeds of GBP43.3m will be received (less a retention of GBP190,000, which will be paid on completion of some ongoing works to the rear service yard scheduled for September 2016).
The proceeds, net of the retention and bank debt of GBP23m, will be available to be returned to shareholders and further details on the Board’s proposals will follow when the transaction has completed. The transaction reflects a net yield of 4.85% for the Group’s long leasehold investment and will result in a premium of approximately GBP1m over the current valuation.
The Group is also able to confirm that the disposal of its Kingsmead investment at Stafford which was announced on 18 August 2016 completed, as expected, on 24 August 2016 realising GBP4.2m after repayment of GBP21.8m bank debt relating to Kingsmead.
LXB : LXB Retail sells B&Q Greenwich