Custodian REIT PLC (LSE:CREI) said it acquired two drive-through restaurants on Clifton Moor Retail Park in York for £3.025mln.
The units are occupied by Burger King and KFC franchisees with a weighted average unexpired term to first break or expiry of 9.7 years. The aggregate passing rent for the units is £163,250 per year, reflecting a net initial yield of 5.07%, the property investment company said in a statement.
“We are delighted to have secured these modern assets on the foremost retail and leisure destination in North Yorkshire,” commented Richard Shepherd-Cross, managing director of Custodian Capital Limited (LSE:CAPD), the company’s investment manager.
“The drive through sector continues to show considerable growth which we believe will drive rents over the medium term resulting in an increasingly attractive yield.”