Roadside JV acquires £70m Lidl portfolio
Roadside Real Estate’s joint venture with Meadow Real Estate has acquired 12 under-construction stores from Lidl for a total consideration of £70m.
Following an initial commitment of £30m, Lidl – which has acquired the relevant land and secured planning permission – will sell and leaseback the 12 stores to the joint venture once construction is completed.
The stores are spread across England and Scotland, with locations including Alexandria, Birmingham, Bovey Tracey, Bristol, Crediton, Downham Market, Hull, Manchester, Northampton, Reading, Redcar, and Saffron Walden. Construction at the sites is expected to be completed between October 2024 and February 2025.
The 12 stores range between 20,000 and 25,000 square feet and will add to Lidl’s existing portfolio of over 960 stores.
The transaction is the joint venture’s fourth and largest deal to date, and the group said it remains in negotiation on several further site acquisitions.
Roadside Real Estate was advised by Savills.
Simon Jones, Roadside Real Estate’s property director, said: “We’re delighted to have worked with Lidl on the funding of 12 new stores across the UK, especially as it is one of fastest growing food retailers in the country. We have a strong pipeline of acquisitions and envisage reaching £150 million of acquisitions in the first 12 months of the joint venture.”
George Trimmer, investment at Savills, added: “This is a unique opportunity to forward fund the construction of 12 supermarkets let to Lidl Great Britain Limited. The foodstores will be let on 25-year leases, which offers both stability and growth, providing a reliable long-term income stream with the added benefit of annual indexation. In addition, the sale and leaseback arrangement offers Lidl an excellent opportunity to unlock capital, while retaining operational control.”