Property investor prepares AIM float

Published 09th Oct 2009

A property company backed by the chairman of New Look and the founder of the Seriously Strong Cheddar brand plans to list on the London Stock Exchange's junior market and raise £100 million from institutional investors.

LXB Retail, founded by former executives at Grantchester, a listed retail warehouse specialist, plans to invest in "out of town" and "edge of town" retail assets, it said today.

An eight-strong investment team, led by Tim Walton, Grantchester's former chief executive, plan to invest £12.5 million of their own money in LXB Retail, which is hoping to list on the LSE's AIM market.

LXB's board features Phil Wrigley, the chairman of New Look — the retailer that is itself considering a listing — as well as Alastair Irvine, the founder of Seriously Strong Cheddar, the UK's second largest cheese brand.

Steve Webb, the investor relations director at Tesco, Danny Kitchen, the chairman of the Irish Nationwide Building Society, and George Baird, the former treasurer of the state of Jersey, are also involved.

LXB Retail in the past has had links with Tom Hunter, the Scottish Entrepreneur, Baugur, the collapsed Icelandic investor, and HBOS, the UK lender that is now part of Lloyds Banking Group.

It said today that it planned to capitalise on the "structural change" taking place in the UK out of town retail sector and said that it had already identified investment opportunities.

LXB will acquire retail parks "where there is scope, through development and asset management, to generate above average cash returns for shareholders".

JP Morgan Cazenove and Oriel Securities have been hired to manage the float.

No firm details on timing were made today by LXB, which is structured as a tax-efficient closed-ended real estate investment company. It will also list on the Channel Islands Stock Exchange.

Mr Walton, who has a long track record building up property portfolios, said: "We see huge opportunity to capitalise on the changes taking place within the retail parks sector."

LXB will concentrate on UK retailers that are preparing to expand their retail parks.

To help support its investment strategy, it has secured a £50 million credit facility from Royal Bank of Scotland and Bank of Ireland.

Source: ' Times '

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