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Highlights
- Roadside Retail Limited signs agreement to acquire Brampton Hut services near Huntingdon.
- The JV will add EV charging infrastructure with Gridserve's 10 charging points by mid-2025.
- Acquisition expected to generate £0.35 million annual net operating income with strong tenant mix.
Roadside (AIM: ROAD) is pleased to announce that its joint venture, Roadside Retail Limited, in partnership with Meadow Real Estate Fund VI LP ("Meadow Partners"), has signed an agreement to acquire Brampton Hut services located at the junction of the A14 and A1 near Huntingdon in Cambridgeshire. The acquisition, valued at £4.81 million, will be funded from the JV's existing cash resources.
Brampton Hut features 8,617 sq ft of lettable space across six units, with tenants including major brands such as Starbucks, Greggs, Wendy's, Subway, and Burger King. These tenants provide the JV with an annual net operating income of approximately £0.35 million. The site also offers 74 car parking spaces, creating ample opportunity for the installation of electric vehicle (EV) charging infrastructure.
EV Charging Infrastructure and Future Growth
In an effort to enhance the value of the site and cater to the increasing demand for EV charging, Gridserve Electric Hubs Limited ("GridServe") will install 10 EV charging points at Brampton Hut, with the infrastructure expected to become operational in the first half of 2025. Once installed, GridServe will enter into a new 20-year index-linked lease to operate the EV charging infrastructure. The JV will also make a top-up payment of £0.58 million to the vendor, reflecting the additional income stream generated by the EV charging facilities.
The addition of EV charging points aligns with the JV’s commitment to sustainability and its focus on enhancing the site's appeal to both tenants and customers. Brampton Hut’s location at a major transport interchange, coupled with the planned infrastructure upgrades, will drive footfall to the site and make it a desirable destination for future tenants.
Executive Commentary
Charles Dickson, Executive Chairman of Roadside, commented on the acquisition, saying, “The JV has almost deployed £100 million in just over 13 months and looks forward to adding further assets in due course. Brampton Hut is a high-quality cluster of ESG-compliant Drive Thru and Drive2 units, let to household names at the junction of the A14 and A1, an area recently enhanced by £1.5 billion of investment in new road infrastructure.”
He added, “The expansion of EV charging infrastructure at the site will serve passing traffic alongside a major transport interchange, providing important amenities that drive footfall at the site and enhances its desirability to tenants.”
Investment Pipeline and Future Strategy
The acquisition of Brampton Hut is part of Roadside's broader strategy to expand its roadside real estate portfolio. The JV has a prospective investment pipeline exceeding £150 million, which includes opportunities for additional acquisitions across the UK. Roadside Retail Limited remains focused on assets that offer sustainable returns for investors while providing valuable amenities to local communities. The JV's continued focus on high-quality, nationwide tenants ensures reliable, long-term income streams for its stakeholders.
With the Brampton Hut acquisition, Roadside is further solidifying its position in the UK roadside real estate market, capitalizing on strategic locations and the growing demand for EV infrastructure, while continuing to deliver strong returns to its investors.
