Investment Sale of KFC Drive-thru, London
February 11, 2020
Coffer Corporate Leisure has sold a prime drive thru in north west London on behalf of EPF Group, 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 3,778 sq ft 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.
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”.
Coffer Corporate Leisure acted on behalf of the vendor, EPF. The purchaser was a high net worth private family, based in the UK.