Global private equity real estate investor M3 Capital Partners (M3) has sold a leading UK-based motorway service area developer to a consortium of institutional investors for an undisclosed sum.
Extra MSA Group (Extra) develops and owns strategically located Motorway Services Area (MSA) sites in the UK, with a vertically integrated platform of predominantly freehold sites operated through a landlord and tenant model.
The portfolio consists of eight operational MSA sites - Cobham M25, Beaconsfield M40, Leeds Skelton Lake M1, Peterborough A1(M), Cambridge A14 (M11), Baldock A1(M), Blackburn M65 and Cullompton M5.
Extra also owns two dual sided MSA fuel filling stations stations at Chesterfield M1, Winchester M3, in addition to three MSA development projects at Amersham M25, Solihull M42 and Warrington M62.
M3 will retain ownership of London Gateway Services, strategically located on the M1, 16 km northwest of the City of London.
The sale of Extra is M3’s second transaction in the sector within the last 12 months following last November’s sale of the Ulysses portfolio of eight MSA sites operated by Welcome Break under long term leases.
M3 acquired Extra and the Ulysses portfolio in two transactions from the receivers of LBG and RBS in 2010 and 2013.
The buying consortium consists of European pension funds and other midmarket infrastructure investors.
Its investment in Extra will be managed by an independent special purpose vehicle whose partners include experienced infrastructure professionals Hamish De Run and Michael Dinham.
M3 and Extra were advised by CBRE, Harris Williams, Mayer Brown and Shoosmiths, while Evercore and White & Case advised the consortium.
