Long Let McDonald’s Drive Thru Investment
McDonald’s Drive Thru, Berristow Lane, South Normanton DE55 2JL
INVESTMENT SUMMARY
n The property is prominently located on the roundabout for the East Midlands Designer Outlet, half a mile from J28 of the M1
n Modern McDonalds Drive Thru developed in 2012 and extending to 4,105 sq.ft with 32 car parking spaces
n Let entirely to the undoubted covenant of McDonald’s Restaurants Ltd for over 17.5 years
n Current rent £90,000 per annum - £21.92 per sq.ft.
n 5 yearly upward only reviews to open market value
nFreehold
n Offers sought in excess of £1,550,000
n Net initial yield 5.50%, assuming costs of purchase of 5.80%
LOCATION
South Normanton is located in Nottinghamshire 12 miles north west of Nottingham, 3 miles west of
Sutton in Ashfield, 8 miles south west of Mansfield and 15 miles north east of Derby.
The town benefits from excellent road communications being situated on J28 of the M1 motorway
and adjacent to the A38 dual carriageway.
SITUATION
The property is prominently situated off the A38 dual carriageway on the roundabout for the East
Midlands Designer Outlet, half a mile from J28 of the M1.
The East Midlands Designer Outlet is the leading designer outlet village in the Midlands with over 70
stores, cafes and restaurants and attracting over 2.7 million visitors per annum. Occupiers include
Marks & Spencer, Superdry, French Connection, GAP, Kurt Geiger, Next, Nike, Tommy Hilfiger, Pizza
Express and Starbucks.
The area is also one of the main distribution warehouse hubs for the north Midlands with both
Castlewood Business Park and Amber Park Distribution Park in close proximity with occupiers
including Co-op, UDG and Norbert Dentressangle.
DESCRIPTION
The property comprises a modern single storey detached McDonald’s drive thru
restaurant developed in 2012. The property extends to 381.36 sq.m (4,105 sq.ft)
and has been constructed to McDonald’s latest specifications. Externally there are
32 car parking spaces on site.
Access is off both Berristow Lane and Carter Lane. The site area is 0.28 hectares
(0.71 acres).
TENURE
The property is held freehold. There is a right for the adjoining owner of the land
hatched blue on the site plan to use the access road hatched green on the site
plan subject to a contribution towards the maintenance and upkeep of the access
road.
TENANCY
The property is let to McDonald’s Restaurants Ltd for a term of 20 years from 29
September 2012. The current rent is £90,000 per annum (£21.92 per sq.ft).
The lease is held on full repairing and insuring terms subject to five yearly upward
only reviews to open market value. The next review is 29 September 2017.
COVENANT
McDonald’s Restaurants is the most well know fast food and Drive Thru restaurant operator
in the UK with over 1200 restaurants. The company is also the world’s largest chain of quick
service restaurants serving over 10 million customers daily.
The company is continuing to expand and has plans to open a further 400 restaurants in
the UK over the next 10 years creating over 2,400 jobs annually. The focus for this growth
will be freestanding drive thru restaurants in close proximity to retail and transport hubs as
per the subject property.
The company is an undoubted covenant and a summary of the company’s accounts is set
out below.
McDonald’s Restaurants Ltd
31/12/2013
£,000s
31/12/2012
£,000s
31/12/2011
£,000s
1,497,573
1,317,594
1,248,549
Pre-tax Profit
244,885
202,214
176,563
Total Assets Less Current Liabilities
828,013
690,446
530,087
Turnover
The company has a Dun and Bradstreet rating of 5A1.
EPC
CONTACTS
The property has an EPC rating of B30. The report can be provided upon request.
For further information or if you wish to arrange a viewing, please contact :-
VAT
The property is elected for VAT and therefore VAT will be payable on the purchase price. It
is anticipated that the sale will be dealt with as a TOGC.
PROPOSAL
We are instructed to seek offers in excess of £1,550,000 (One Million Five Hundred and
Fifty Thousand Pounds) subject to contract and exclusive of VAT.
A purchase at this level would reflect a net initial yield of 5.50%, assuming usual costs of
purchase of 5.80%.
BEN BLACKWALL
0121 513 0893
[email protected]
ANDREW FRANCK-STEIER
0121 513 0891
[email protected]
Franck Steier Price Ltd
Third Floor, Victoria House
114-116 Colmore Row, Birmingham, B3 3BD
Misrepresentation Clause : The accuracy of any description, dimensions, references to condition, necessary permissions for use and
occupation and other details contained herein are not guaranteed and are for general guidance only and prospective purchasers
or tenants must not rely on them as statements of fact or representations and must satisfy themselves of their accuracy. Neither
Franck-Steier Price Ltd, nor any of their employees or representatives has any authority to make or give any representation or
warranty or enter into any contract whatever in relation to the property. Prices and rents quoted in these particulars may be
subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not
constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended
function. Prospective tenants/purchasers should satisfy themselves as to the condition of such equipment for their requirements.