Westmorland agrees £27m funding for M5 services

INDEPENDENT motorway service station operator Westmorland has agreed a £27m funding deal to help with the next phase of its M5 development.

The Cumbrian family business, which operates the Tebay motorway service station on the M6, an hotle and visitor centre, has agreed the new funding with the Royal Bank of Scotland.

The facilities include development funding to enable construction of a new southbound service station on the M5 at Gloucester to complement the northbound services which opened in May.
 
Construction work is now under way on the southbound service and is due to be completed in summer 2015. The Gloucester project has close charitable links with the Gloucestershire Gateway Trust and will donate a percentage of its profits – an estimated £10m over 20 years – to spend on community projects.
 
Westmorland managing director Laurence King said: “The support that RBS has provided gives a platform for the completion of the Gloucester development which we are immensely proud of.

“We have developed a close relationship with the RBS team through the process and look forward to continuing this partnership in the future.”
 
James Adams, director structured finance at RBS in Manchester, added “Westmorland’s values lie in employing and training local people, as well as forging close links with local charities and upholding strong sustainability credentials.

“This, along with offering the finest quality regional produce, is what drives their business. We are delighted to support them through an exciting period of growth, creating new jobs and reinforcing the company’s strong position.”

A team from KPMG in Manchester led by Guy Weaver, ran the fundraising process. Valuation and commercial due diligence was provided by GVA Grimley and CBRE. Matt Christmas of DLA Piper advised RBS with Tim Fearn of Pinsent Masons advising Westmorland.