Property group in £9m deal for Ayr project

By Dominic Jeff
Published on Tuesday 4 October 2011 21:20

Property investment company LXB has bought 118 acres of Scottish land earmarked for development under a local authority plan to build shops, business premises and thousands of homes.

The London-based firm, which joined the Alternative Investment Market two years ago and specialises in retail property, said it had acquired the land at Corton, Ayrshire, from the Lynch Group for about £9 million.

The site forms the first phase of the South East Ayr masterplan, an initiative by South Ayrshire Council to develop up to 2,700 homes with retail and commercial space.

LXB plans to build a large food store in a first phase that could also include up to 800 houses.

Chief executive Tim Walton said: “South Ayr is an affluent area of Scotland and a foodstore in this location will be a very strong addition to LXB’s portfolio of retail investments.”

LXB said it would work with the Lynch Group to develop the site, and is in advanced negotiations with “a major foodstore operator” about lease terms on the new shop.

The company paid £7.075m up front for the site from its cash pile, with an additional £2m payable once full planning permission is granted. It expects to make a detailed planning application in March.