LONDON: Roadside Retail Limited, in partnership with Meadow Real Estate Fund VI LP, has announced the acquisition of 12 stores from Lidl Great Britain Limited for a total of £70 million.
This joint venture (JV) aims to acquire and develop roadside real estate assets across the UK.
Lidl has already acquired the land, secured planning permission, and commenced construction of these stores, which are expected to be completed between late October 2024 and February 2025.
Upon completion, Lidl will sell the stores to the JV and lease them back on 25-year leases with annual indexation, starting from March 1, 2025. These stores, each ranging between 20,000 and 25,000 square feet, will expand Lidl’s existing estate of over 960 stores across the UK.
Roadside will contribute 3% of the equity for the acquisition, amounting to an initial £450,000 and a maximum commitment of £2.1 million, funded from its existing cash resources.
This acquisition marks the JV’s fourth and largest deal to date, with negotiations ongoing for additional site acquisitions to deliver sustainable returns and amenities to local communities.
Executive Chairman of Roadside, Charles Dickson, highlighted the significance of the transaction, noting its alignment with the JV’s strategy to provide targeted capital for tenant expansion and generate asset management fees. Richard Taylor, Chief Development Officer at Lidl GB, expressed ambitions for further expansion, emphasizing the benefits of the deal for Lidl’s growth.
Andrew McDaniel, Founding Partner at Meadow Partners, praised the partnership’s approach to asset selection and long-term returns, while George Trimmer from Savills highlighted the stability and growth offered by the 25-year leases. Legal and investment advice for the acquisition was provided by Todd Wu at Mishcon De Reya and George Trimmer at Savills, respectively.