RO Group acquires roadside Starbucks in Norfolk
RO Group has expanded its roadside portfolio with the freehold purchase of a Starbucks drive-through on the Attleborough Bypass in Norfolk.
The restaurant, alongside 2.85 acres of adjoining development land, were acquired for a combined purchase price of £1,557,500.
The 3,298 sq ft restaurant is let to Starbucks on a 20-year full repairing and insuring lease to October 2037, with 11.25 years unexpired and no breaks. The unit’s current passing rent is £80,808 per annum, subject to upward-only rent reviews in October 2027 and October 2032.
The site sits on the A11 between Norwich and Thetford, one of the region’s key commuter and freight routes, with over 43,500 vehicles passing daily. It also shares the wider site with a 24-hour BP filling station and Marks & Spencer concession.
The 2.85 acres of adjoining land comprises a 0.4-acre vacant surfaced car park and further vacant land and offers asset management opportunities. RO said it intends to explore options to lease the surfaced land for open storage, EV use, or further roadside development.
Nick Cashmore, investment director at RO Real Estate, said: “We are very pleased to have added this Starbucks drive thru investment to our roadside portfolio. The property occupies a prime trading location on the A11, provides secure long-term income from a strong covenant and offers attractive potential for rental growth at future reviews given the low passing rent of £80,808 which reflects £24.50 per sqft.
“The additional 2.85 acres of land also gives us real scope to create further value through active asset management and potential roadside development. We already have interest from potential occupiers in the storage, leisure and roadside retail sectors. The acquisition is a good fit with our strategy of growing our roadside portfolio through a combination of acquiring high-quality income-producing assets and developing opportunities ourselves.”
The RO Group was advised by AP Investment and Womble Bond Dickinson.