Roadside Real Estate inks store purchase with Lidl for GBP70 million

(Alliance News) - Roadside Real Estate PLC on Monday said that Roadside Retail Ltd has signed an ...

Alliance News 28 October, 2024 | 4:28PM
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(Alliance News) - Roadside Real Estate PLC on Monday said that Roadside Retail Ltd has signed an agreement with Lidl Great Britain Ltd to buy 12 stores for GBP70 million.

Roadside Real Estate is an Abingdon, England-based investor. Roadside Retail is its joint venture with Meadow Real Estate Fund VI LP.

The stores are expected to be completed between late October through to February.

Following an initial commitment of GBP30 million, and upon completion of construction, Lidl will sell to the joint venture and leaseback each of the 12 new stores. The new stores will be on 25-year leases with annual indexation with a fixed rent commencement date of March 1, 2025.

In line with the terms of the joint venture, Roadside Real Estate will provide 3.0% of the equity for the acquisition of the Lidl Portfolio, amounting to an initial GBP450,000 and a total maximum commitment of GBP2.1 million. This will be funded from Roadside's existing cash resources.

"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," said Executive Chair Charles Dickson.

"The Lidl portfolio is an excellent example of the JVs strategy in action, rapidly providing targeted capital to enable tenant expansion whilst securing asset management fees and creating additional opportunities for income initiatives."

Shares in Roadside Real Estate were down slightly at 27.59 pence each in London on Monday afternoon.

By Holly Beveridge, Alliance News senior reporter

Comments and questions to newsroom@alliancenews.com

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Roadside Real Estate PLC 27.20 GBX -1.45 -

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