Orchard Street Investment Management (‘Orchard Street’), the specialist commercial property investment manager, announces that it has acquired the freehold of Woolley Edge Motorway Service Station (“Woolley Edge”) on the M1 motorway in Yorkshire for £35.1 million.The acquisition, which Orchard Street has made on behalf of St. James’s Place Property Unit Trust, reflects a net initial yield of 6.8%.
Located between junctions 38 and 39 of the M1 near Wakefield, Woolley Edge is let on a 25-year lease (11 years unexpired) without break options to MOTO Hospitality, the UK’s leading motorway services operator, with a full Compass Group guarantee. The current passing rent is circa £2.5 million per annum subject to annual unrestricted RPI uplifts.
Woolley Edge is set on approximately 30 acres and provides two separate motorway service areas for the south and northbound carriageways with a gross internal area of 35,495 sq ft.The site is laid out to provide a large quantity of car, coach and lorry parking.
The service areas are built around a central pavilion and house outlets including M&S Simply Food (southbound), Costa Coffee, Burger King and WH Smith along with convenience facilities for motorists. Both sites include a BP petrol filling station and a Travelodge Hotel whichprovides 32 bedrooms and 41 bedrooms on the north and southbound sides respectively.
John Humberstone, Partner at Orchard Street, said:
“Woolley Edge is located in a prime position on the northern section of M1. It already provides a strong index linked income stream and also offers attractive long term value prospects.”
Orchard Street was advised by Knight Frank; Cushman & Wakefield andPyle Owenacted for the vendor
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Orchard Street Investment Management
Established in 2004, Orchard Street Investment Management LLP is a leading specialist commercial property investment manager, focused on the UK market. It acts on behalf of institutional clients world-wide to advise on investing in and the active management of property assets, including industrial, retail warehouses, offices and shopping centres. Orchard Street currently has assets under management exceeding £4 billion.