Maidstone Borough Council buys major in-borough leisure asset
Maidstone Borough Council have purchased the long leasehold interest of the Lockmeadow multi-let leisure scheme.
The 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 c.8 acres and provides over 600 car parking spaces. Odeon have extended their lease to 15 years term certain alongside the Council’s purchase.
Maidstone Borough Council are the current freeholder and by merging the interests will be able to remove the existing headrent payable under the long lease.
Lockmeadow provides the major commercial leisure facility for Maidstone. Following their purchase, the Council are keen to introduce improvements to the environment, both internal and external, 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 complimentary tenant mix.
The price paid was a headline of approximately £19 million reflecting 7.60% niy rising to over 8% following the immediate merger of the interests and with further guaranteed increases to follow. The Council were represented by ESH.
Pictured: Lockmeadow Leisure Scheme