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Lidl has signed an agreement to sell 12 stores under construction to Roadside Real Estate for £70m.
The discounter previously purchased the land and secured planning permission for the sites, with completion of the shops expected from late October through to February 2025.
Roadside, which set up a joint venture with Meadow Real Estate Fund to acquire and develop roadside property assets, agreed to acquire the 12 stores once finished and lease them back to Lidl on 25-year leases.
Roadside has paid Lidl £30m upfront, with the remaining £40m to follow once construction work is finished.
The stores are evenly spread across the UK and will add to Lidl’s existing 960-plus store estate.
Richard Taylor, Lidl GB chief development officer, said: “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’re continuing to expand our footprint across the country, ensuring that even more households can benefit from a Lidl store. We look forward to a long and productive relationship with Roadside, Meadow and the JV.”
Roadside executive chairman Charles Dickson added: “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.”
George Trimmer of Savills said: “This is an opportunity to forward fund the construction of 12 supermarkets let to Lidl.
“The food stores 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 GB Limited an excellent opportunity to unlock capital, while retaining operational control.”
The Lidl stores will be located in Northampton, Reading, Bristol, Hull, Saffron Walden, Downham Market, Manchester, Alexandria, Birmingham, Crediton, Bovey Tracey and Redcar.
Morning update
The John Lewis Partnership is recruiting a record 12,500 temporary roles across the country over the Christmas period, more than 4,000 higher than last year’s total.
The roles are in Waitrose and John Lewis shops, as well as the distribution network.
“Our partners have always been at the heart of what sets us apart,” said customer director Charlotte Lock. “We’re thrilled by the interest the roles have already received and that people want to be part of the excitement that surrounds our two brands at Christmas.”
This week in the City
The City is looking a little quieter over half-term, but tomorrow brings the latest UK shop price index from the British Retail Consortium, with half-year results from C&C Group.
This week’s big event is the much-anticipated first budget under the Labour government as Rachel Reeves takes to the dispatch box on Wednesday.
On Thursday, Haleon and Coca-Cola HBC are due to issue trading statements, while mega brewers AB InBev and Carlsberg report Q3 results.
Over in the US, Mondelez and McDonald’s report quarterly results on Tuesday, with Kraft Heinz following on Wednesday.
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