Roadside property joint venture completes first acquisition
Fri, 15 Dec 2023 | COMMERCIAL PROPERTY
A joint venture formed earlier this year to acquire and develop a portfolio of UK roadside real estate assets has completed its first acquisition. The joint venture, formed by AIM-listed Barkby and real estate private equity manager Meadow Partners, has acquired a site in Stoke for £5.28 million.
The asset was acquired by Meadow Partners in September 2023 and the firm is now selling it to the JV at cost. The deal will be funded in line with the principal terms of the joint venture’s equity commitments, with Meadow owning and funding 97 per cent of the JV and Barkby owning and funding the remaining three per cent.
The site covers 15,489 sq ft across four units, leased to TGI Friday’s, Wagamama, Nando’s and Costa Drive Thru. The units are leased at an average rent of £18.87 per square foot, representing an net initial yield of 7.95 per cent.
In addition to these units, the site also features 239 car parking spaces, with the scope to install a minimum of 12 ultra-fast electric vehicle (EV) chargers. This reflects the JV’s focus on assets that offer a mix of convenience food and opportunities to develop EV charging facilities, as well as sites with trade counter businesses and local logistics.
Barkby Group Executive Chairman Charles Dickson said: "We are pleased to have completed the JV's first acquisition. The Stoke asset has scope for several accretive investment opportunities, not least the installation of much-needed EV charging infrastructure.”
"This acquisition follows practical completions at Barkby's wholly owned assets in Wellingborough and Maldon, which are both fully let and together generate over £500,000 of annualised rental income."
The JV will run over a 30 month investment period, during which it is aiming to build a portfolio of modern real estate assets worth in excess of £250 million via acquisitions, asset management and development.
It has a pipeline of prospective roadside real estate investments in excess of £150 million, with negotiations ongoing for a number of further acquisitions. Other sites in its pipeline include Barkby’s existing portfolio of wholly-owned roadside assets, comprising schemes in Wellingborough and Maldon.
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