LXB Retail Properties is set to wind itself up in 2017 after ruling out conversion to a real estate investment trust, according to chairman Phil Wrigley.
The company intends to put forward a resolution at its next annual general meeting in May 2016 proposing to “realise the group’s investments in an orderly fashion with the intention that substantially the whole of shareholder value will be returned by March 2017”, he said.
The proposal comes after LXB shareholders voted in May to extend the life of the company by a year to give the board time to examine options for a conversion or winding up.
In an update on trading for the year to the end of September, Wrigley said: “I am pleased to say that much progress has been made and, whilst there are uncertainties remaining, it is clear to the board that the issues that need to be addressed to everyone’s satisfaction with regard to a winding up look like they can be overcome. I believe that this approach is likely to meet with the overwhelming support of shareholders.”
The company may look to appoint a liquidator in March 2017 to complete the formalities of a solvent winding up, Wrigley added.
The results for the year to the end of September showed an increase in net asset value of 10.4% after an £82.6m return of cash to shareholders in June.
NAV per share fell by 23% including the cash return.
Wrigley said: “The retail property market remains difficult, especially in the food sector where it is well documented that retailers are looking to challenge contractual commitments wherever possible. Securing planning either in principle, or in looking to make changes of detail, remains an arduous process.”
