Newcore Capital has acquired a long leasehold of Welcome Break motorway service area (MSA) at South Mimms for an undisclosed sum.
The 11-acre service area between J23 of the M25 and the A1(M), that sees more 200,000 daily movements, features 70,000 sq ft across the amenity building, restaurants and hotel.
It is let to Welcome Break until 2036 with passing rent of £1.6m per year. The rent is structured as a ground rent and is subject to open market review in February 2026.
The was purchased on behalf of Newcore’s latest value-add fund, Newcore Strategic Situations V (NSS V).
Harry Savory, chief information officer for Newcore Capital, said: “We are delighted to have purchased the service area at South Mimms for NSS V. It is a key strategic holding in UK transport infrastructure; it has a well-established trading position and is virtually unopposed from competition along the northern part of the M25. The site is uniquely positioned to capitalise on the transition towards EV and this will be key to delivering strong future performance.”
On behalf of NSS V, Newcore also received planning consent for the redevelopment of the former-Royal Mail delivery office in Blackheath as a 120-place children’s nursery and nine residential apartments in June 2024.
The following month, Newcore completed the letting of a 25,000 sq ft school in Milton Keynes to Compass Schools, a national operator in children services, specialising in SEN schools, fostering and residential care.
Hugo Llewelyn, chief executive for Newcore Capital, said: “The acquisition of South Mimms MSA follows an active summer for our latest value-add vehicle, with planning consent secured for new childcare provision and residential accommodation, as well as a leasing agreement for a specialist education provider.
“One of the additional benefits of investing in social infrastructure-related real estate is the positive impact our assets can have, whether that is supporting the decarbonisation of our transport system or providing much needed childcare or educational services.”
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