LONDON, 27 October 2014 – CBRE Global Investors has, on behalf of a separate account client, acquired Doncaster North Services for £21 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 £1.4m p.a. 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.
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About CBRE Global Investors
CBRE Global Investors is a global real estate investment management firm with $92.8 billion in assets under management* as of June 30, 2014. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBG). It harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services and investment company for the benefit of its investors. CBRE Group, Inc. has approximately 44,000 employees in approximately 350 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.
*Assets under management (AUM) refers to fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of properties and real estate-related loans; securities portfolios; and investments in operating companies, joint ventures and in private real estate funds under its fund of funds program. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.