EPF sells London drive-thru at record yield

Leisure and retail specialist investor EPF Group has sold a KFC drive-thru in Colindale at a record sale price, representing a 3.35% net initial yield. The £3.95m deal for the drive-thru – bought by an undisclosed, high net worth private family based in the UK – is thought to represent the lowest yield achieved for a drive-thru investment.  The property sits on a prime location fronting Edgware Road. It is let to one of KFC’s largest franchisees for a further 11 years. The passing rent is £141,000 per annum.   Adam Coffer, managing director of EPF, 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.” EPF is currently preparing to acquire around £50m worth of opportunities this year, via a new funding agreement. Coffer 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’s portfolio includes properties in central London, Brighton, Leamington, Nottingham, Canterbury and Surrey. Coffer Corporate Leisure represented EPF. Lawrence Telford, director of Coffer Corporate Leisure, said: “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.” To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette