Lidl secures £70 million deal to fund 12 new stores across the UK

Lidl, the German discount supermarket chain, has finalised a significant £70 million sale-and-leaseback deal to fund the forward construction of 12 new stores across the United Kingdom. This landmark agreement supports Lidl’s ambitious expansion strategy in the UK, one of its key markets, as it seeks to increase its footprint and bring affordable, high-quality groceries to more communities nationwide.

Lidl has partnered with Roadside Real Estate and Meadow Real Estate Fund, who together formed a joint venture to acquire the newly constructed stores. Under the terms of the agreement, Lidl will maintain operational control of each location while unlocking capital that can support the company’s ongoing growth trajectory. Initially, Lidl acquired the land and secured planning permission for each of the 12 sites, which are strategically located across the UK. Once construction is completed, Roadside Real Estate will acquire the stores, which Lidl will lease back under a 25-year agreement. This structure allows Lidl to retain a strong presence within these communities while benefiting from a flexible capital arrangement. The joint venture has already contributed £30 million upfront, with the remaining £40 million due upon the stores’ completion, expected between late October and February 2025.

The 12 new locations are set to add to Lidl’s current network of over 960 stores, expanding its footprint in a way that aligns with its ambitious UK growth plan.

Richard Taylor, Lidl GB chief development officer, said: “We have big 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’re continuing to expand our footprint 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 Dickson added: “The Lidl portfolio is an excellent example of the JVs strategy in action, rapidly providing targeted capital to enable tenant expansion whilst securing asset management fees and creating additional opportunities for income initiatives.”

George Trimmer of Savills said: “This is an opportunity to forward fund the construction of 12 supermarkets let to Lidl.

“The food stores will be let on 25-year leases, which offers both stability and growth, providing a reliable long-term income stream with the added benefit of annual indexation. In addition, the sale and leaseback arrangement offers Lidl GB Limited an excellent opportunity to unlock capital, while retaining operational control.”

This sale-and-leaseback deal underscores Lidl’s dedication to sustainable growth, demonstrating a financial model that combines innovation with operational stability. By unlocking capital through strategic real estate partnerships, Lidl can expedite its store-opening program while continuing to invest in quality and affordability for its customers.