AIM-listed Barkby Group has announced a joint venture with Meadow Partners to build a £250 million property portfolio of roadside community amenities and establish a new asset class for the real estate sector.
European law firm Fieldfisher has advised Barkby, a London AIM-listed roadside real estate business, on the formation of a joint venture (JV) with real estate private equity manager Meadow Partners LLP, to acquire and develop a portfolio of UK-based roadside real estate assets.
The JV aims to create a substantial portfolio of modern roadside real estate assets worth £250 million delivering valuable community amenities, including electric vehicle (EV) charging.
Meadow, which is based in New York and London with US$6.2 billion gross assets under management, will initially own and fund 97% of the JV, while Barkby will own and fund 3% and has the option to increase its ownership to 10% within the first 12 months following the JV’s establishment.
Barkby also intends to change its name to ‘Roadside Real Estate plc’ to reflect its strategy of institutionalising a new asset class within the real estate sector.
Barkby has successfully developed a small number of roadside sites as proof of concept. 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.
In the present challenging capital markets environment, Barkby's board concluded that the JV offers the best structure to support the successful implementation of its strategy.
Fieldfisher's Equity Capital Markets team advised Barkby on the establishment and shareholder arrangements on the property holding JV, as well as establishing the asset and development manager of the portfolio and negotiating the asset management and development management agreements.
The Fieldfisher team advising Barkby on the formation of the JV was led by Corporate Partner Brad Isaac, assisted by Associate Ed Slegg on corporate matters; Construction Partner Cecily Davis on asset management and development management agreements; and Head of Funds Dale Gabbert and Financial Markets and Products Director Simon Lafferty advised on the funds and financial regulatory aspects.
Commenting on the deal, Corporate Partner Brad Isaac said:
"This JV represents a creative solution to getting deals done in a tough market for publicly traded companies.
"This is the second large JV we have completed this year for listed clients, where the parties have used this structure to fund the development of the business as an alternative to a traditional equity raise.
"Congratulations to Barkby on successfully forming its JV."
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