LXB Retail Properties’ shareholders will decide this month whether to wind down its £250m property portfolio or allow the firm to convert to a real estate investment trust.
The future of the company will be decided at an AGM on 27 May, with the management advocating a continuation of the company for another 12 months.
A vote for continuation is likely to result in the firm being listed as a REIT in order to maximise shareholder returns. Its development stock would need to be converted to standing assets to qualify.
If it is turned down by the board, then voters will come up with proposals on how to terminate the company, which would involve selling the firm’s remaining assets.
Chairman Phil Wrigley said: “Back in 2009 it was reasonable to anticipate that [all assets would be fully developed] by now; however, as a direct result of the challenging market in the past few years, there is unfinished business from which there is still significant potential value to be gained.”
LXB has already been unloading mature assets, including Rushden Lakes in Northamptonshire, which it sold in April for £70m – reflecting a 4.65% yield – to The Crown Estate.
