Lidl has sealed a deal to sell 12 stores under construction, which it will then lease back, nearly a year after approaching investors with a funding pitch.
Lidl has sold the 12 sites for £70m to Roadside Retail, which has agreed to lease them back to the discounter for 25 years. Roadside Retail is a joint venture between Meadow Real Estate Fund and Roadside Real Estate.
Roadside Retail Limited has paid Lidl £30m upfront, with the remaining £40m to follow once construction is finished.
It is thought to be the first property deal of its kind in the UK for Lidl, with the majority of its estate being freehold-owned. It also marks a breakthrough for its UK estate expansion programme, which has slowed since early last year as its parent Lidl Stiftung grapples with higher interest rates on debt.
As revealed earlier this year by The Grocer, after seeing the funding pitch, the 12 stores are between 20,000 and 25,000 sq ft and spread across the UK in locations including Crediton, Manchester, and Saffron Walden.
Completion of the stores is expected between late October 2024 and February 2025, while rent will commence from 1 March 2025.
Lidl said the agreement reflected its continued commitment to expanding its footprint, while also exploring innovative and flexible approaches to growth.
It also said it would open 10 stores before Christmas, including in Bristol, Bovey Tracey and Birmingham, creating around 400 new jobs. Its UK estate currently stands at over 960 stores.
“We have big ambitions for our expansion, which includes plans to open hundreds more Lidl stores in the future,” said Lidl GB chief development officer Richard Taylor.
“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.”
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