Roadside to offload commercial property arm in £12m related party deal

(Sharecast News) - Roadside Real Estate announced an agreement to sell its commercial property business to Tarncourt Properties for around �12m on Friday, in a deal that would allow the AIM-traded group to focus on its core roadside retail strategy.

The company, formerly known as the Barkby Group, said the disposal would be effected by selling the entire issued share capital of the subsidiaries holding the commercial property assets.

After deducting �7.3m of third-party debt and making net working capital adjustments, Roadside said it expected to receive net consideration of �4.7m, which would be set off against amounts owed under the existing Tarncourt facility.

Following completion, the balance outstanding on the Tarncourt facility was expected to be �5m, with a further �7m remaining available to draw.

Roadside also planned to extend the term of the facility to April 2028 and increase its size to �12m.

Chief executive Charles Dickson and the Dickson family ultimately controls Tarncourt, making the transaction a related party deal under AIM rules.

"This is an important step in streamlining the Group in line with its strategic focus," said chairman Steve Carson.

"We believe the roadside retail assets have the potential to generate significant returns for shareholders and Roadside continues to seek, and is currently evaluating, a number of opportunities to acquire further roadside retail assets to meet evolving consumer demands."

The disposal, which constitutes a fundamental change of business under AIM rules, will need shareholder approval at a general meeting scheduled for 29 September.

At 1320 BST, shares in Roadside Real Estate were up 1.01% at 55.05p.

Reporting by Josh White for Sharecast.com.