City snapshot: Lidl agrees £70m property deal to fund 12 stores | News

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Lidl has signed an agreement to sell 12 stores under construction to Roadside Real Estate for £70 million.

The discounter previously acquired the land and received planning permission for the sites, with the stores expected to be completed between late October and February 2025.

Roadside, which has entered into a joint venture with Meadow Real Estate Fund to acquire and develop roadside properties, has agreed to acquire 12 stores upon completion and lease them back to Lidl on a 25-year lease.

Roadside has paid Lidl £30 million upfront, with the remaining £40 million to be paid once the building work is completed.

The stores are spread evenly across the UK and will add to Lidl’s existing 960+ stores.

Richard Taylor, chief development officer at Lidl GB, said: “We have great 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 continue to expand our presence 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 Dixon added: “Lidl’s portfolio is an excellent example of a joint venture strategy in action, quickly providing targeted capital for occupier expansion while generating asset management fees and creating additional opportunities for income generation initiatives.”

George Trimmer, of Savills, said: “This is an opportunity to use funds to build 12 supermarkets leased to Lidl.

“The food stores will have a 25-year lease, providing both stability and growth, providing a secure long-term income stream with the added benefit of annual indexation. In addition, the sale and leaseback agreement offers Lidl GB Limited an excellent opportunity to unlock capital while maintaining operational control.”

Lidl stores will be located in Northampton, Reading, Bristol, Hull, Saffron Walden, Downham Market, Manchester, Alexandria, Birmingham, Crediton, Bovey Tracy and Redcar.

Morning update

The John Lewis Partnership is recruiting a record 12,500 temporary vacancies across the country over the Christmas period, up more than 4,000 on last year.

The roles are in Waitrose and John Lewis stores and across the distribution network.

“Our partners have always been at the heart of what makes us different,” said Chief Customer Officer Charlotte Locke. “We’re delighted with the interest these roles have already generated and that people want to be part of the excitement surrounding our two brands at Christmas.”

This week in the city

The city will be a little quieter for the half-year period, but tomorrow will see the latest UK store price index from the British Retail Consortium, as well as half-year results from the C&C Group.

The big event this week will be the Labor government’s long-awaited first budget, which Rachel Reeves will deliver on Wednesday.

Haleon and Coca-Cola HBC are set to release trading results on Thursday, while megabreweries AB InBev and Carlsberg will report third-quarter results.

In the US, Mondelez and McDonald’s will report quarterly results on Tuesday, and Kraft Heinz on Wednesday.