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Barkby Group PLC on Friday said its joint-venture with Meadow Partners LLP has completed its first acquisition, spending £5.3 million. Shares in Barkby were down 5.9% to 5.97 pence each in London on Friday afternoon. The Abingdon, England-based investor in roadside property and in consumer and life sciences companies said the purchase is part of the joint venture’s plan to acquire and develop a portfolio of UK-based roadside real estate assets. Barkby said the asset in Stoke, England was acquired by Meadow Partners in September and is selling it to the joint-venture at cost. The acquisition will be funded in line with the joint-venture’s equity commitments. Meadow Partners owns and funds 97%, while Barkby owns and funds 3%. Accordingly, Barkby has made an initial equity contribution of £167,625 to the joint-venture to fund the acquisition. The Stoke asset features 15,489 square feet of lettable space over four units on an average rent of £18.87 per square foot, representing a net initial yield of 7.95%. The units are leased to brands ’Costa Drive Thru’, ’TGI Friday’s’, ’Nando’s’ and ’wagamama’, providing around £408,000 of net operating income with a weighted average unexpired lease term of 11.6 years and 9.4 years including lease breaks. Barkby said 10% of the total projected net operating income will be indexed to retail price index uplifts. ‘The Stoke asset has scope for several accretive investment opportunities, not least the installation of much-needed electric vehicle charging infrastructure,’ said Barkby Executive Chair Charles Dickson. The site includes 239 car parking spaces, in which the joint-venture can install a minimum of 12 ultra-fast electric vehicle chargers at no cost. Barkby said these charging bays each have the potential to generate around £4,000 annual income on a 20-year lease with annual RPI uplifts. ‘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,’ said Barkby Chair Dickson. ‘The joint-venture has a prospective roadside real estate investment pipeline in excess of £150 million, which we are confident will attract high-quality nationwide tenants, underpinning reliable, long term income streams. ‘The joint-venture is in ongoing negotiation on a number of further site acquisitions as it works to deploy the joint-venture’s equity commitment in assets that deliver sustainable returns for investors and valuable amenities to local communities.’ Copyright 2023 Alliance News Ltd. All Rights Reserved.
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