Barkby, the roadside real estate business, and its joint venture (JV) with Meadow Partners has acquired its first asset for a total cost of £5.28m.
Meadow acquired the asset in Stoke in September 2023 and is selling it at cost to the JV, which is set to acquire and develop a portfolio of UK-based roadside real estate assets.
The acquisition will be funded in line with the principal terms of the JV’s equity commitments, whereby Meadow will own and fund 97% of the JV while Barkby will own and fund 3%. Barkby has made an initial equity contribution of £167,625 to the JV to fund the acquisition.
The site features lettable space of 15,489 sq ft over four units on an average rent of £18.87/ sq ft, representing a net initial yield of 7.95%.
The units are leased to Costa Drive Thru, TGI Friday’s, Nando’s and wagamama, providing circa £408,000 of net operating income with a weighted average unexpired lease term of 11.6 years and 9.4 years including lease breaks.
The site includes 239 car parking spaces within which there is scope to install a minimum of 12 ultra-fast EV chargers at no capital expenditure cost to the JV. These charging bays each have the potential to generate around £4,000 of annual income on a 20-year lease with annual RPI uplifts.
Charles Dickson, executive chairman, 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 has a prospective roadside real estate investment pipeline in excess of £150m, and is in ongoing negotiations on a number of further site acquisitions as it aims to institutionalise the fragmented ownership of the roadside asset class in the UK. This is as it works to deploy the JV’s equity commitment in assets that deliver sustainable returns for investors and valuable amenities to local communities.
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