Roadside Retail Limited, a UK joint venture between Roadside Real Estate and the Meadow Real Estate Fund VI funds managed by Meadow Partners, has invested £70m (€84m) to acquire a portfolio of stores from discount retail chain Lidl. I am.
A UK-based partnership set up to acquire and develop roadside property assets has entered into an agreement with Lidl Great Britain Limited to acquire 12 stores in a forward financing agreement.
Following an initial investment of £30 million in land value, Lidl will sell the 12 newly built stores to the joint venture upon completion and lease them back.
The expected completion date for the store is between late October 2024 and February 2025. The new store will be subject to a 25-year lease agreement starting March 1, 2025 and indexed annually, the partnership said.
This transaction is the joint venture’s fourth and largest transaction to date.
Charles Dixon, Executive Chairman of Roadside, said: “This is a significant transaction for both Lidl and the joint venture, with a significant portion of the joint venture’s investment target being allocated to a nationally recognized company based on strong terms and conditions. Investing in high-quality assets with established tenants.”
“Lidl’s portfolio is a great example of a joint venture strategy in action, securing asset management fees and creating additional income opportunities, while quickly raising targeted funds to enable tenant expansion. We provide.”
Richard Taylor, chief development officer at Lidl GB, said: “This agreement is the latest in how we continue to expand our footprint across the country and enable more households to benefit from a Lidl store. It’s just an example.”
Andrew McDaniel, founding partner of Meadow Partners, said: “The Lidl portfolio demonstrates the value of a roadside approach to asset selection and active management strategies, and the resilient long-term returns that can be achieved in this attractive sub-sector of the real estate market.
“We look forward to continuing to identify attractive opportunities to expand our partnership in the future.”
Todd Wu of Mishcon de Reya provided acquisition legal advice to the joint venture and George Trimmer of Savills provided investment advice.
Mr Trimmer, UK investment associate at Savills, said: “This is an opportunity to transfer funds towards the construction of the 12 supermarkets commissioned by Lidl.” The grocery store is signed on a 25-year lease, providing both stability and growth, providing a reliable long-term revenue stream with the added benefit of annual indexing.
“Furthermore, the sale and leaseback arrangement provides Lidl GB Limited with an excellent opportunity to free up capital while maintaining operational control.”
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