Westmorland revs up for M5 project with £20m funding

WESTMORLAND, the family-owned independent motorway service operator based in Cumbria, has agreed a £20m funding deal for its M5 project in Gloucester.

The financing was agreed after a lengthy planning inquiry with the green light for the £40m scheme on a 60-acre site either side of the motorway being obtained last summer.

The lender is the Co-operative Bank, which has agreed a debt funding package for the ambitious, eco-friendly project.

Gloucester Services north and southbound, will generate 300 jobs and significant community benefit as a local charity is working with Westmorland. The first phase, for the north-bound facility is due to open in summer 2014.

Gloucester Services will aim to replicate the success that Westmorland has achieved with Tebay Services on the M6, which grew out of the Dunning’s family farm.

Like the Tebay model, Gloucester Services, will have no franchise but instead will celebrate Gloucestershire through its farm shop selling local produce, home-made food in the cafes and the use of local art and crafts people in the interior design.

North West law firm Brabners Chaffe Street advised Westmorland on the property and construction aspects of the financial package arranged with the Co-op Bank.

The building itself has been carefully designed to minimise the impact on the environment with a grass-covered roof and BREEAM excellent credentials.

Gloucester Services is also a innovative business model in its partnership with the local charity, Gloucestershire Gateway Trust and has made a commitment to put £10m back into local community projects over the next 20 years

Laurence King, managing director of Westmorland, said: “We are delighted building work is finally under way and we are a step closer to bringing benefits to the local community as well as raising awareness of Gloucestershire to the 50 million travellers who pass the site each year.

“There are not many banks open for business, particularly for an innovative proposition of this nature and we are very excited to be moving forward now.”

North West law firm Brabners Chaffe Street  advised Westmorland on the property and construction aspects of the deal.

Property partner Tony Fitzmaurice said: “After being involved in the project for almost five years, it is great to see the development get off the ground and we wish Westmorland every success going forward.”

The banking team at Pinsent Masons also advised Westmorland on the banking documents. KPMG advised the company on the bank funding.

Manchester law firm Pannone acted for the Co-operative Bank, which led the deal from its Preston corporate banking centre.