A property investment company has completed a £1.7 million deal for a development site in Nottingham.
Custodian REIT has acquired 0.6 acres of land next to the Castle Marina Retail Park and recently developed NG2 Business Park.
The land is on the busy A453 Queens Drive, the main route into Nottingham city centre from the south.
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The site is having a 2,163 sq ft drive-through coffee shop with 34 parking spaces built on it, with construction phased over an expected six month period.
The unit, to be developed by Portal Nottingham Limited, has been pre-let to KBeverage Limited (trading as Starbucks Coffee) on a 20 year lease, without break, with five yearly upward only market rent reviews.
The total annual rent will be £115,000 a year - a net initial yield of 6.67 per cent.
Richard Shepherd-Cross, managing director of Leicester-based Custodian Capital Limited, the listed company’s discretionary investment manager, said: “Demand for drive-through stores continues to show growth, especially in the hot beverage market, and is proving resilient in the face of the Covid-19 pandemic.
“The location of this property on an arterial access route for Nottingham city centre allows easy accessibility for traffic both entering and leaving the city, enhancing the site’s offering.”
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Custodian REIT plc is a real estate investment trust which was listed on the main market of the London Stock Exchange in March 2014.
Its portfolio comprises 海角视频 properties predominantly let to institutional grade tenants on long leases, usually with individual values of less than £10 million.