Forsters advise LXB on £100 million Greenwich sales and development funding
Forsters has advised LXB Retail Properties in relation to various transactions which will divest the AIM listed company of the majority of its property interests in the Royal Borough of Greenwich.
Since its IPO in 2009, LXB has made a number of investments in existing retail assets and development sites in the Greenwich area as part of a major retail redevelopment scheme.
Providing a full range of commercial property, planning, construction and property litigation services, Forsters has advised in connection with the site assembly and creation of the scheme which includes new stores for Marks & Spencer and Sainsburys with adjacent retail "pods" at the Maritime site on Bugsby's Way, which will provide approximately 236,000 sq ft of new retail space.
Contracts have recently been exchanged with a client of Aberdeen Asset Management for the disposal of the Maritime scheme for £58 million subject to satisfaction of planning and leasing conditions. The purchaser will also fund the development costs, with LXB continuing to oversee the development build and deal with the letting arrangements in respect of the retail pods.
In addition, Forsters has advised LXB in relation to a further 77,000 sq ft retail scheme known as Brocklebank, located opposite to the Maritime scheme, which includes the newly developed 21,500 sq ft Wickes retail warehouse and is intended to accommodate another 80,000 sq ft of retail space.
Another client of Aberdeen Asset Management has entered into a conditional contract in relation to the Wickes Unit for a purchase price of £6.39 million and an option to purchase the remainder of the Brocklebank scheme on practical completion for an anticipated £50.6 million. The same purchaser has recently completed the acquisition from LXB of the adjacent Stone Lake Retail Park, where tenants include Currys, PC World and Halfords, for £32.95 million.
Commercial Property partner, Eugene McMahon, led the cross-practice group team advising LXB assisted by partner Ronan Ledwidge and Ben Brayford in relation to property matters and Emily Holdstock on construction matters.