Lidl secures investor offer to fund construction of 35 stores
Lidl has reached an agreement with an investor to finance the construction of 35 stores across the UK and Europe.
The portfolio, which includes 17 UK supermarkets, is currently under offer by investment group ICG for over €250m (£215m), The Grocer has reported.
Under the terms of the agreement, the stores will be leased back to Lidl once they are constructed. These terms are similar to those of Lidl’s first UK sale-and-leaseback deal in the UK, which was agreed with Roadside Real Estate in October last year.
Lidl has typically expanded across the UK by building and owning its stores, but has recently become more open to leasehold deals to encourage faster expansion.
The retailer is expecting to complete the deal this financial year.
A Lidl International spokesperson told The Grocer: “The qualitative and quantitative expansion of our network of stores has always been a key driver for the sustainable growth of our company.
“As a matter of principle, we do not focus on short-term developments, but always think long-term, economically, and sustainably. In particularly promising market situations, we consciously decide to develop properties and projects together with partners and investors.”
ICG declined to comment.
This comes as Lidl looks to open over 40 new stores in the UK this financial year, is it targets a 1,500-strong UK estate in the long term.