EPF drives through to record investment deal

February 12, 2020

Leisure and retail specialist investor EPF Group has sold a prime drive thru in north west London at record sale price, representing a 3.35% net initial yield. The £3.95m transaction for the KFC Drive Thru in Colindale, NW9, is understood to represent the lowest yield achieved for a drive-thru investment.

The property sits on a prime location fronting the Edgware Road and is one of the busiest sites in London. The site comprises a KFC branded, purpose-built fast food drive-thru restaurant, let to one of the largest KFC franchisees for a further 11 years, whilst Kentucky Fried Chicken (Great Britain) Ltd also guarantees the lease. The passing rent is £141,000 per annum. The purchaser, a high net worth private family, based in the UK.

EPF managing director Adam Coffer said, “We acquired this site several years ago when it was vacant and created substantial value through asset management initiatives. It was time for us to extract that value and allow an investor with longer term income appetite, rather than added value motivations, to take it on. The buyer performed impeccably and is highly experienced and I am certain they will benefit from a terrific acquisition that meets their requirements as well.

Coffer said that EPF is close to announcing an innovative funding agreement with a joint venture partner to acquire c£50m worth of opportunities this year.

He added: ”Our portfolio is focused on leisure and retail opportunities where we can identify the opportunity to add value. The key for us has always been about ‘tradability’ and performance of property – namely how well the location would trade for an occupier we identify, no matter who the tenant or covenant.”

EPF has a UK wide portfolio in prime leisure pitches including assets in central London, Brighton, Leamington, Nottingham, Canterbury and Surrey.

Specialist leisure investment advisor Coffer Corporate Leisure represented EPF.

Lawrence Telford, Director of Coffer Corporate Leisure said: “This high-quality, ideally located asset attracted interest from institutional and private investors alike, reflecting the record-breaking yield for such an asset.  Demand for Drive-Thru investments has increased substantially in recent years with investors attracted to the strong and stable trading performance of Drive-Thru assets generally and the prospect for strong future rental growth”.