- Mumbles Group has an excellent track record in the sector, having completed eight successful forecourt projects since 2014;
- The capital from OakNorth Bank will support Mumbles’ ambitious growth plans to acquire and develop more than 20 forecourts;
- Forecourts continue to play a vital role in local economies, providing over 88,000 jobs across the UK, with over three quarters (76%) of them also engaged in some form of community activity over the last year[1];
- According to Lumina Intelligence[2], the convenience market is expected to total £47.1B by 2024, increasing by 2.9% from 2021.
OakNorth Bank – the UK bank for entrepreneurs, by entrepreneurs – has provided a £20M loan to Mumbles Group to more than 20 new forecourts across the UK.
Mumbles Group is a privately-owned commercial developer with a track record of successful development projects, concentrating on the development of roadside sites for new forecourts. Its modus operandi is to locate assets and opportunities with development potential through the team’s knowledge of the market and enter into lease agreements with established operators.
Occupiers include Co-operative Group (Co-op), M&S, Sainsbury’s and Vets4Pets, with recent projects including the acquisition and development of a new Co-op and forecourt at St Columb Minor, Newquay, Cornwall; Co-op Drakewalls forecourt in Gunnislake, Cornwall and a new M&S and forecourt at Crowthorne, Berkshire. Mumbles most recently completed project in January 2022 is a Local Centre at Hele Park, Newton Abbot, Devon. This project consists of a Co-op convenience store plus three additional units that have been let to a local baker, beauty salon and an estate agent.
Mumbles are on site currently building a new forecourt and convenience store for Co-op at Moor road, Chorley, with completion forecasted for April 2022. In addition, Mumbles have exchanged contracts for an existing site in Crystal Palace, South London, to develop a new forecourt with a Co-op convenience store, which will include EV charging for the local community.
Commenting on the transaction, Dominic David, Managing Director of Mumbles Group, said: “With the Covid-19 pandemic still impacting our daily lives, forecourts and the wider convenience sector continue to play a vital role in local communities. Around one in four independent forecourts are open 24 hours, allowing shoppers to purchase their essentials without needing to go to a crowded supermarket. With this capital from OakNorth Bank, we will be able to significantly increase our growth pipeline, which in turn will create many new jobs in local communities. The team at OakNorth Bank have developed a flexible facility, which enables us to draw down the capital as and when we need it, rather than having to re-apply for capital every time we want to develop a new site – which is what most other lenders would make us do.”
Eamonn O’Rourke, Director of Property Finance at OakNorth Bank, added: “With flexible working set to continue, we expect convenience stores to remain popular, given their prominent positions within local communities. Mumbles Group has the network and track record in the forecourts sector to capitalise on this opportunity and is clearly doing so with its ambitious expansion plans. Simon and Dominic continue to strengthen the Group’s already excellent track record within the forecourt and wider convenience sector, and we look forward to watching the group thrive in 2022.”
ENDS
Notes to editors
About OakNorth Bank plc
Launched in September 2015 and founded by entrepreneurs, OakNorth Bank provides fast, flexible, and accessible debt finance to the UK’s Missing Middle.
Since its launch, the bank has:
- Lent over £7B, directly helping with the creation of 27,600 new jobs and 22,300 new homes across the UK.
- Raised deposits from c.160,000 savers.
- Supported several hundred businesses across the UK with the debt finance to pursue their growth ambitions.
It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Contact
Tom Pavey-Smith, Associate Director – Growth & Communications: [email protected] / [email protected] / 0791 716 5588
[1] Association of Convenience Stores – UK Forecourt Sector Provides Over 88,000 Local, Secure Jobs
[2] Lumina Intelligence – UK Convenience Market: Size, Growth & Share Statistics