Welcome Break, Bridgend

Welcome Break, Sarn Park, J36 of the M4 Motorway, Bridgend, CF32 9SY, UK

Description

A purpose-built motorway service area at Junction 36 of the M4 Motorway. The buildings on site include a single storey motorway services building constructed in approximately 2007, together with a fuel filling station and two storey 40 bed Days Inn hotel original constructed in the 1980s.

Brands and facilities at the services include Starbucks Drive Thru, Burger King, Subway, WH Smith, Krispy Kreme, Game Zone and male, female & disabled WCs. The external areas comprise four surfaced car parks, with landscaping and wooded areas to the site periphery. There are 16 Tesla Supercharger, 8 Applegreen, 6 Gridserve EV charging points within the car parking areas.

Welcome Break, Sarn Park was the “best rated” motorway service area in Wales according to the 2023 Transport Focus Motorway User survey.

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Attributes

Asking price

₩10,411,482,000

Occupancy

100%

WAULT

40 years

Media

Investment Highlights

Located at Junction 36 of the M4 Motorway
A modern, purpose-built Welcome Break Motorway Services, with petrol filling station and Days Inn Hotel
Site extending to approximately 15.52 acres (6.28 hectares)
Secure, long-let, indexed linked ground rent investment
Let to Welcome Break Limited for a term of 50 years from 22 October 2015, expiring 21 October 2065 (40 years unexpired), with a tenant option to purchase at lease expiry
Current passing rent of £356,636 per annum
Annual RPI linked rent reviews with a cap and collar of 1% - 4% per annum
Long Leasehold for a term of 125 years from 22 October 2015, expiring 21 October 2140 (115 years unexpired), at a peppercorn
The passing rent is at a low gearing compared to estimated EBITDA and the investment value is at a significant discount to the vacant possession value, underpinning the secure nature of the investment.

We are instructed to seek offers in excess of £5,535,000 (Five Million Five Hundred and Thirty Five Thousand Pounds) subject to contract and exclusive of VAT.

A purchase at this level reflects a net initial yield of 6.0% assuming purchaser's costs of 7.40%.