CBRE Global Investors has, on behalf of a separate account client, acquired Doncaster North Services for £21 million (€26 million)reflecting a net initial yield of 6.3%, from an offshore fund.
The motorway service area (MSA) is let in its entirety to MOTO Hospitality Ltd with a guarantee from Compass Group plc for another 11 years with annual reviews to uncapped RPI at a rent of £1.4 million per annum. Built in 2000 to serve the M18 and M180 motorways from a single location, the property comprises a large BP petrol station, a Travelodge hotel and a MOTO pavilion food court. The Pavilion is operated by MOTO and occupiers include Burger King, Costa and WH Smith.
Tim Munn, Senior Director, CBRE Global Investors commented on the acquisition: “With a long lease, let to an operator with the benefit of a strong guarantor and attractive annual RPI reviews we have secured an asset that complements our client’s portfolio well and meets their investment criteria. The MSA sector provides diversification for us into a sector with the added benefit of barriers to entry.”
GVA and Field Fisher Waterhouse LLP acted on behalf of CBRE Global Investors and Cushman & Wakefield LLP, Pyle & Owen and Stephenson Harwood LLP advised the Seller.
Source: CBRE Global Investors