PROJECT PITSTOP: HARRIS LAMB INSTRUCTED ON ROADSIDE RETAIL INVESTMENT PORTFOLIO WITH £15.9MILLION GUIDE PRICE

An investment portfolio of national drive-to and drive-thru assets has been brought to market by Harris Lamb, with the business’ Retail team instructed to sell seven sites located throughout the country, seeking offers in excess of £15,963,000, representing a blended net initial yield of 5.76 per cent.

The ‘Project Pitstop’ portfolio comprises prominent roadside assets located in Northampton, Wednesbury, Oswestry, Warrington, Cardiff, Wakefield and Willerby, all of which are fully let with tenants including Starbucks, Costa, Burger King, KFC, Greggs, IN ‘n’ OUT, Source EV and Osprey Charging Network.

David Walton, Head of Retail at Harris Lamb, said: “Competition for drive thru sites is fierce, exacerbated by increasing consumer demand for convenience and a limited supply of new opportunities, planning constraints and rising development costs. This is a rare opportunity to acquire a successful, highly prominent and very profitable portfolio of well-let reversionary drive to and drive thru assets.

“With a total floor area of 26,717 sq ft, the portfolio is 100% let to high-profile occupiers with a current topped up rent of £977,699 per annum, reflecting a low average rent of £35.34 per sq ft. The weighted average unexpired lease term (WAULT) is 12.2 to expiry and 10.7 to break, with 57% of the income benefitting from guaranteed fixed or indexed linked uplifts.

“The sites also benefit from a number of active asset management opportunities including site densification and repurposing for alternative uses, providing additional scope for expansion and diversification,” he said.

The business, alongside joint agents Stockford Anderson, have been instructed to seek offers for the portfolio in excess of £15,963,000.

David said: “A purchase at this level will reflect a blended net initial yield of 5.76% after allowing for purchaser’s costs of 6.74%, on a portfolio basis, though the vendor will consider selling the assets individually.

“We anticipate significant interest in this opportunity from investors keen to capitalise on the rapidly growing drive thru market. Consumer spending within the roadside retail sector has reached around £2.5bn, with 2,256 drive thru outlets currently operating in the UK, with rental values within the field rising by more than 25% year on years and reaching a high of £90 per sq ft in areas where there is a limited supply of such assets,” he added.

Full details and data room access are available on request from David at david.walton@harrislamb.com or joint agents Stockford Anderson.