We are pleased to report that we have exchanged contracts to forward sell a new Costa Drive Thru in Scarborough. Acting on instructions from Rothstone Developments, we agreed the sale to clients of Prideview at a price reflecting a net return of 5.50% for 10 years term certain of income. Works are about to commence of site with practical completion expected in the Spring of 2021.
With interest rates close to zero, it is very difficult to secure decent income returns – let alone one that shows a positive return in real terms. In this case, the investment provides more than just secure income. The property caters to the expanding market for convenience and the site fronts onto the busy A64. It is adjacent to a Morrisons Supermarket and a McDonalds Drive Thru – hence there is customer throughput. Therefore, where the fundamentals are strong investor demand appears to be strong. We do not anticipate this changing for the foreseeable future.
