Why EV charging hubs are becoming one of the UK’s most sought-after commercial investments

A few years ago, an EV charging hub would have been an unusual choice for a commercial property investor. Today, it is one of the most keenly contested investment opportunities we bring to market. Here is why the sector has attracted such strong interest, and what investors should understand before committing capital.

The demand backdrop

The UK government has committed to ending the sale of new petrol and diesel cars by 2035. With the number of electric vehicles on UK roads growing rapidly — and the public charging network still significantly underdeveloped relative to demand — the investment case for EV charging infrastructure has become increasingly compelling.

Operators such as Fastned, Gridserve, Pod Point and BP Pulse are actively expanding their networks and seeking long-term sites across the UK. To secure the best locations, many operators are willing to commit to long leases — often 25 to 35 years — which creates exactly the kind of income security that commercial property investors look for.

What makes an EV charging hub a strong investment?

The investment characteristics of a well-let EV charging hub share many of the features that make any commercial investment attractive:

• Long lease terms — typically 25 to 35 years from a new operator, providing exceptional income visibility
• Strong tenant covenants — operators are typically well-capitalised businesses backed by institutional or energy sector investors
• Upward-only rent reviews — often linked to RPI or fixed uplifts, providing inflation protection
• Freehold ownership — the investor owns the land and the income, with no ground rent or superior landlord
• Relatively low management requirements — the operator is responsible for the equipment, maintenance and operation of the site

What yields are available?

EV charging hub investments have attracted strong investor interest and yields have compressed considerably as the sector has matured. Properties let to established operators on long leases are typically trading at net initial yields of between 6.0% and 7.0%, reflecting the quality and security of the income. Opportunities with shorter unexpired terms or less well-known operators may offer higher yields to reflect the additional risk.

What should investors look out for?

As with any investment, the quality of the opportunity depends on the detail. Key considerations include:

• The financial strength of the tenant — a 30-year lease is only as secure as the company behind it
• The site location — high-traffic locations such as motorway services, retail parks and major arterial routes will always attract more usage and therefore more financially robust operators
• The lease structure — review provisions, break clauses and repairing obligations all affect the long-term value of the income
• Planning — confirm that the use is established and that there are no conditions or restrictions that could affect the operation of the site

Singer Vielle’s experience in the sector

We have marketed EV charging hub investments including a freehold ultra-rapid charging hub in Stoke-on-Trent let to Fastned UK Limited on a 30-year lease, reflecting a 6.0% net initial yield at a purchase price of £1,320,000. Fastned is a Netherlands-based operator with a growing UK network, backed by long-term institutional capital.

The level of investor interest in that opportunity demonstrated clearly that appetite for the sector is strong across private investors, property companies and funds alike.

If you are interested in EV charging hub investments or would like to be notified of new opportunities as they come to market, please register your interest with us.