Maidstone Borough Council, advised by ESH, has purchased the long leasehold interest of the Lockmeadow multi-let leisure park in Maidstone.
The 141,329 sq ft park is situated on the fringe of the town centre alongside the River Medway and is anchored by an Odeon cinema. Other tenants include Hollywood Bowl, David Lloyd, Gravity Fitness, Greene King, Frankie & Benny’s and Gourmet Burger Kitchen. The scheme occupies a substantial site extending to approximately eight acres and provides over 600 car parking spaces. Odeon has extended its lease to 15 years term certain alongside the council’s purchase.
The price paid was a headline of approximately £19 million reflecting a 7.65% net initial yield rising to over 8% following immediate merger of the interests and with further guaranteed increases to follow.
Maidstone Borough Council is the current freeholder and by merging the interests will be able to remove the existing head rent payable under the long lease.
Lockmeadow provides the major commercial leisure facility for Maidstone and following the purchase, the council is keen to introduce improvements to the environment, both internally and externally, to ensure that Lockmeadow remains an exciting and vibrant place to visit. The council is extremely interested to explore the ever changing occupier market and the new entrants to the leisure sector in order to establish a complementary tenant mix.
The council was represented by ESH. Savills advised the vendor.
