A high net worth private family has bought a KFC drive thru in north west London for £3.95m – a price that the seller, EPF Group, claims represents the lowest yield ever achieved for a drive-thru investment.
The passing rent is £141,000 per annum, and the price represents a 3.35% net initial yield.
Leisure and retail investor EPF bought the busy site, which fronts Edgware Road in Colindale, when it was vacant. Managing director Adam Coffer said: “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 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.”
EPF also announced it was “close” to signing an agreement with a new joint venture partner, which would kickstart a £50m investment drive.