LXB Retail Properties has signed two deals which will reshape its investments at Greenwich. Following a pre-let for a new store to Sainsbury’s last year, LXB signed an agreement to build a 350,000-sq ft store for IKEA on the site of the former Sainsbury’s unit and an adjoining site formerly occupied by Comet. That deal was conditional on IKEA obtaining planning consent but that condition has now been met and the deal has gone unconditional.
At the same time LXB has struck a deal with with Royal London Asset Management to buy the site next door, currently occupied by a 93,500-sq ft B&Q, for £38m representing a 5.6 per cent yield. There are currently nine years remaining on the B&Q lease and LXB said that with its prime location, adjacent to a cinema, the proposed IKEA and the adjacent residential development, it considers that this investment offers a number of opportunities for capital growth in the medium term as well as a good running yield.