Barkby Group PLC announced the formation of a joint venture with Meadow Partners LLP, to acquire and develop a portfolio of UK-based Roadside Real Estate assets, (the JV). Joint venture aiming to create a substantial portfolio of modern Roadside Real Estate assets, to be funded by up to PS100 million of equity with an intention to add appropriate levels of leverage. The JV is targeting a double-digit portfolio internal rate of return ("IRR") over the 30 month initial investment period.

Meadow will initially own and fund 97% of the JV while Barkby will own and fund 3%. Barkby has the option to increase its ownership percentage in the JV up to a maximum aggregate holding of 10% within the first 12 months following the JV's establishment (the "Additional Investment Option"). The Company has explored a variety of options to fund its strategy amidst a challenging capital markets environment.

The Board has concluded that the JV offers the best structure to support the successful implementation of its strategy, maximising the creation of sustainable shareholder value. The formation of the JV creates a well-capitalised vehicle capable of rapidly deploying investment in target assets. Meadow is a real estate private equity manager based in New York and London with USD 6.2 billion gross AUM.

Meadow specialises in middle-market real estate transactions across all sub-sectors and risk profiles. Its partners have been responsible for the acquisition and ongoing asset management of over USD 30 billion of real estate assets located in the United States, Europe and Asia. Meadow is now investing Fund VI.

The JV will focus on acquiring sites where it can offer consumers a mix of Drive Thru, Foodvenience, Local Logistics and Trade Counter businesses alongside opportunities to increase EV charging facilities. Over the 30 month investment period, the JV intends to create a modern roadside portfolio worth over PS250 million through acquisition, asset management and development, including opportunities across the portfolio for electric vehicle charging infrastructure. The JV has a prospective Roadside Real Estate investment pipeline in excess of PS150 million as more stock comes to the market and additional approaches are being made to the Company by vendors.

Tenant demand for these sites is strong, attracting high-quality nationwide operators, underpinning reliable, long term income streams. The pipeline includes a site in Stoke which is currently owned by Meadow, which the JV may consider as an initial JV acquisition, however it is still subject to due diligence and negotiation by the Development & Asset Manager. As announced in the trading update of 29 September 2023, Barkby's existing wholly-owned portfolio of Roadside assets comprises two schemes which the JV may considered as investments: Wellingborough, which achieved practical completion in May 2023 and is fully let, providing a contracted rent of PS232,300 per annum across a total rentable space of 14,100 sq.ft. Occupiers include Greggs, Formula One Autocentres, City Plumbing Supplies and Milwaukee Decororres, City Plumbing Supp Supplies and Brewers Decoror.