Land Securities pounces on LxB

Land Securities has bought out-of-town specialist LxB Properties for£360 million, indicating that the spate of corporate activity in the property sector shows no signs of abating. The portfolio comprises retail parks in Bracknell and Chester, plus a stake in two more in Crayford and Strood owned in partnership with Deutsche Asset Management and ten supermarkets across the UK.

This is the second time LxB's management team has sold its business - LxB was founded by in 2002 by Tim Walton and Nick Alford after the takeover of Grantchester, their previous vehicle, by Hammerson. Baugur and Tom Hunter's West Coast Capital provided venture capital for the start-up. The LxB management will not be joining Land Securities and will retain the rights to use the name.

The deal strengthens Land Securities' position in the out-of-town sector, and following the purchase it will own 30 retail warehouse parks and 12 supermarket assets. Group chief executive Francis Salway said: 'We believe that certain segments of the out-of-town retail market, particularly supermarkets and open A1 parks, will deliver the strongest future growth and it is exactly these areas of the retail market that we are capturing through this acquisition.'