£100m joint venture formed to target roadside assets
Wed, 01 Nov 2023 | COMMERCIAL PROPERTY
A new joint venture has been formed that will seek to acquire and develop a portfolio of roadside real estate assets. The JV, which has been formed by AIM-listed Barkby and real estate private equity manager Meadow Partners, will be funded by up to £100 million of equity. Meadow will initially own and finance 97 per cent of the JV, while Barkby, which is set to be renamed Roadside Real Estate, will own and fund the remaining three per cent.
There will be a 30 month investment period, during which the JV will aim to create a portfolio of modern real estate assets worth over £250 million through acquisitions, asset management and development. It will focus on acquisitions of sites that can offer a mix of drive through convenience food, trade counter businesses, local logistics and opportunities to develop electric vehicle (EV) charging facilities.
Currently, the JV’s pipeline includes a Stoke site currently owned by Meadow, which remains subject to due diligence and negotiation but is under consideration as an initial acquisition. Barkby’s existing portfolio of wholly-owned roadside assets is comprised of two schemes that may also be considered as investments.
The first site, in Wellingborough, includes tenants such as Greggs, Brewers Decorator Centre, City Plumbing Supplies and Formula One Autocentres, while the second site, in Maldon, is poised to imminently reach practical completion.
Barkby Executive Chairman Charles Dickson commented: "We are delighted to be working with Meadow to implement a fully funded strategy to institutionalise a new asset class within the real estate sector. Roadside Real Estate will offer exciting potential for investors and we believe this JV has the opportunity to create a portfolio worth £250m over time.”
"Having successfully developed a small number of roadside sites which have proven our concept, we will seek to rapidly convert our acquisition pipeline to create value for shareholders and our joint venture partner, whilst delivering valuable community amenities - not least increased access to electric vehicle charging."
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