A DRIVE-THRU complex on the outskirts of Oswestry has been bought for £2.6 million.
Investment specialists at Harris Lamb acquired the roadside KFC, Starbucks and OK Diner eateries based just off the Mile End roundabout on behalf of Lightstone Properties Limited.
It is the latest roadside development of its type to be added to the investor’s portfolio.
Holt Commercial acted on behalf of the family pension fund which was selling the site.
Justin Marshall, who oversaw the purchase, said: “This is a prime development located at a very busy location along the main route for visitors travelling to Snowdonia National Park, with more than 27,000 cars passing it every day. It is an incredibly popular spot and benefits from a great deal of trade.
“The site comprises of two purpose-built drive-thru restaurants, trading as Starbucks and KFC, together with shared 43 spaces in a central car park.
“The KFC provides 77 covers inside and 48 outside, while Starbucks provides 60 covers inside and 30 outside. In addition, the site houses an OK Diner.
“The opportunity, was an excellent fit for Lightstone Properties, which has several other roadside assets, including drive-thru schemes, and was keen to add this one to its portfolio.”
The property is principally let to Starbucks and KFC on leases that expire in 2031 and 2033.
Mr Marshall said both were on “soft rents in today’s market, and should perform well into the future.
“The UK drive-thru sector is in a phase of expansion, with new entrants into the market, and this demand will push rents on even harder.”
David Allen, director of Holt Commercial, commented: “Our client is delighted with the outcome and this deal fits into the asset management plan we set out.
“We saw an opportunity to improve the value of the development through the latest round of rent reviews and that has been reflected in the purchase price.
“The drive-thru sector is an area of growth in the market and this deal in Oswestry underlines that.”
Planning permission for the KFC and Starbucks on the site, known as the Oswestry Gateway, was confirmed in early 2012 with work by J Ross Developments, part of The Pickstock Group, commencing soon after.
The restaurants opened the following year.
The development formed the second phase of the Oswestry Gateway which saw J-Ross’ sister companies Elements Europe and JR Pickstock work in collaboration to construct the nearby Premier Inn and Table Table.
The OK Diner opened in 2017.