AIM-listed Roadside, with its joint venture partner Meadow Real Estate Fund, has bought a portfolio of assets from Lidl for £70m.
The pair have bought 12 supermarkets, ranging in size from 20,000 sq ft to 25,000 sq ft, from the budget grocer. Roadside and Meadow have paid an initial £30m for the sites, with the remainder paid upon completion of construction of the sites, which is expected between now and February next year. Lidl will lease the properties back on 25-year terms, with annual indexation and a fixed rent commencement date of 1 March 2025.
Roadside chairman Charles Dickson said: “This is a significant transaction for both Lidl and the jv, deploying a substantial portion of our joint venture’s targeted investment quantum into high-quality assets with a nationally recognised tenant under strong covenants.
“The Lidl portfolio is an excellent example of the jv’s strategy in action, rapidly providing targeted capital to enable tenant expansion whilst securing asset management fees and creating additional opportunities for income initiatives.”
Richard Taylor, chief development officer at Lidl GB, added: “We have big ambitions for our expansion, which includes plans to open hundreds more Lidl stores in the future. This deal is just the latest example of how we are continuing to expand our footprint across the country, ensuring that even more households can benefit from a Lidl store.”
Meadow founding partner Andrew McDaniel said the deal was consistent with Meadow’s high-conviction theme of acquiring long-dated credit income assets trading at historically wide yields in high-quality submarkets on or next to major local thoroughfares.
“The Lidl portfolio demonstrates the value of Roadside’s approach to asset selection and active management strategy and the resilient long-term returns available in this attractive subsector of the real estate market” he said. “We look forward to continuing to identify attractive opportunities to grow our partnership in the future.”
The pair added that they were in negotiation on several further site acquisitions as the jv “works to deploy its equity commitment in assets that deliver sustainable returns for investors and valuable amenities to local communities”.
Savills advised on the deal.
Photo by Maureen McLean/Shutterstock
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