Barkby Group says it is exploring the possibility of becoming a real estate investment trust (REIT) as it aims to build and scale a substantial portfolio of modern and ESG-compliant roadside real estate investments.
In its interim results for the second half of 2022 the group, which also operates a pub company, says construction has progressed well with two of its commercial developments in Wellingborough and Maldon, with a number of tenant contracts already signed.
The Wellingborough development is expected to be completed in April with contracted annual rent at the site set to be £228,000, bolstered by the signing of Greggs, Formula One Autocentres, City Plumbing Supplies, and C. Brewers & Sons.
Construction of the Maldon development is due to conclude in May, and is expected to produce annual rents of £280,000 through tenancies including Costa Coffee, Formula One Autocentres, and Toolstation.
Barkby says that both developments will be held on its balance sheet.
The group has also submitted a planning application for a 27,000 sq ft scheme in Swindon and is expecting an imminent decision. The proposed scheme would be anchored by a national drive-through operator with trade and industrial operators occupying the rest of the site.
Charles Dickson, Barkby executive chairman, said: “We have had a productive first half as we implement our plan to refocus the business on Roadside assets. Our development pipeline is progressing well and attracting high-quality nationwide tenants, underpinning reliable, long term income streams.
“At the same time, we have been active in sourcing a pipeline of attractive assets to fulfil our objective of creating a portfolio of modern, ESG compliant Roadside real estate investments. These efforts have been aided by the downward pressure on real estate valuations, expanding the array of exciting opportunities open to us.”